Have you ever went to the bank actually wanting to sign up for their lastest fixed deposit promotion but ended up being directed to the bank’s financial consultant who recommends you something called a Unit Trust. As sophisticated as it sounds, he then mentions that Unit Trust is like a Investment Fund, a basket of stocks chosen by a fund manager who will manage the investment for you. The fund manager will buy and sell the stocks based on as and when he thinks they are over valued or under valued. He invests in stocks over a relatively long period of time, he does not speculate. The bank sales person then pulls out a factsheet that beatifully depicts the performance of the fund which of course happens to be the best performing fund now in the market.
Know that when you are buying into a Unit Trust that invests in ...
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