For busy Singaporeans who spend most of their time at work, unit trust, also known as mutual fund provides a very hands-off approach to investing.
Here are some quick pointers on what a mutual fund is:
It pools money from a large number of investors to invest The money is managed by a paid Fund Manager, which determines the day to day investment decisions and operations of it. The fund is then used to invest in various investment instruments such as stocks, bonds or other assets. By investing in a mutual fund, an investor purchases “units” of the fund. The price of each unit is influenced by the total net asset value (NAV) of the fund, the liabilities that the fund holds and the number of units it issues. Investors have zero control over the decision of the Fund Managers on the fund. These decisions,...