Asked by Natalie Huang

It is much cheaper to buy unit trusts from online platforms than banks. Why do people still buy from banks? Is there some information I'm missing?

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  • Victor Chng
    Victor Chng, Co-Founder at Fifth Person Pte Ltd
    Level 4. Prodigy
    Answered on 18 Feb 2019

    Hi Natalie,

    I personally don;t buy unit trust so I may not the right person to answer this question.

    You may want to check out fundsupermart or Philip. I think they should be quite competitive in term of unit trust.

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  • Hariz Arthur Maloy
    Hariz Arthur Maloy, Independent Financial Advisor at Promiseland Independent
    Top Contributor

    Top Contributor (Apr)

    Level 7. Grand Master
    Answered on 14 Feb 2019

    Hi Natalie, you can buy Unit Trusts for free online. Banks charge a fee as they're the one giving the recommendation.

    But also, buying unit trust is not a one time and forget thing. You use UTs as a means to build a sustainable balanced portfolio. And you'll usually use 3-6 funds to achieve global diversification and asset allocation.

    Instead of buying from a bank who may not be handling portfolio allocation and management, you can choose to DIY online or instead get from a Financial Advisor. An FA uses UTs to build portfolios, rebalance, adjust weightage in sectors based on market outlooks. That's a much better reason to pay a fee.

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  • Robin Lim
    Robin Lim
    Level 2. Rookie
    Answered on 18 Feb 2019
    1. need to answer who is buying online. Probably none IT savvy.

    2. Too muc information online if u don’t know what u want.

    3. Buying for free commissio. Of course, have managemany fees.
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  • Fox Arora
    Fox Arora
    Level 1. Freshie
    Answered on 01 Mar 2019

    Hi Natalie Seems nobody answered your question or there seems to be a lean towards online since low fees! So far I've invested into UT based on advice thru banks RMs. As part of the fees I get the following services

    • my risk profile done, several ideas of my own challenged and spoken to the analyst team.
    • filtered thru 100s then offered 3-4 UTs that have a track record of returns as per my risk appetite.
    • access to their research team and insights on market trends
    • advice by research team on when to sell off or retain

    Now this is a lot different than having to buy online based on my own reading and learning of something I'm not an expert in compared to research teams at banks and their fund mgrs.

    Hope this helps with some perspective.

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