facebookWhy invest in and how to evaluate UT? - Seedly

Anonymous

18 Apr 2019

General Investing

Why invest in and how to evaluate UT?

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UT - if you want a diversified portfolio, but only have spare cash in the thousands, UT might be an option for you to diversify the portfolio.
They are also easy to purchase, and platforms like Phillips Securities POEMS offer 0% sales charge. Otherwise, you also have your major banks who also allow their customers to buy UT, albeit w a sales of around 0.8-1.5%

Do note that most Unit Trust funds have a management fee of 1.5% p.a. If you compound it, it does eat into your returns (if the economy is doing well) but if the market is down, it means that you would be loosing out more. Most often, UT funds do not outperform the market, so perhaps getting ETFs might be a better options.

If you are short on cash, you can try StashAway. PM for referral so we can get waiver from their platform mgmt fees of 0.7%?

Btw I do not have any stakes in these trading companies or Brokers, just a fresh grad starting out my own investments for a year.

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