facebookIs it safe to invest in unit trust for a first-timer? - Seedly

Anonymous

25 Apr 2019

General Investing

Is it safe to invest in unit trust for a first-timer?

I’m in university now and I wish to invest $10k. I have another emergency fund so I don’t need it to be super liquid etc. I went to a local bank and the consultant recommended that I invest in either First State Bridge Unit trust or First State Dividend Advantage but I’m unsure of how risky this unit trust is. Is it unwise to place all $10k in one investment or should I be looking at other options too?

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Brandan Chen

25 Apr 2019

Financial Planner at Manulife Singapore

First State has been doing well based on the past 10 years.

But back to your question, I would suggest that you not be in a rush to start your investment journey first. The issue here is not about whether is safe or not, but rather, are you prepared to start investing.

If you are asking such a question, and have only spoken to a banker regarding investments, I would suggest that you go through some of the Seedly articles on the basics of investing and what are the options available before making a decision on what to invest in.

My suggestion would be that you take some time to bulk up on your investing knowledge before commiting to anything.

As for the above-mentioned Unit Trust, I would suggest you consider a dollar cost averaging strategy instead of a lump sum injection for now.

I do carry the above Unit Trusts also and some of my clients are quite happy with it so far. If you would like to have a more detailed discussion on investing, feel free to drop me a PM at https://www.facebook.com/brandan.chen

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