Lots of people will give you investment advice - and not all of it will be good. Knowing the facts, however, will help you feel confident about which advice is sound. This easy introduction to the advantages of investing in unit trust funds can get you started.
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(Full transcript)
You have a bit of cash to spare and you want to grow it into something bigger. People are telling you “You need to invest”
But those same people all have different advice on what you should invest in and why?
The whole point of investing is to have your money earn more money at a faster rate than inflation.
One way to do this is on the markets – where the value of companies you invest in can increase and as it does, your investment in that company – your share of that company’s value – gets bigger.
The biggest growth happens over the longer term such as five years or more.
1. You can trust in diversification
When your money is spread over a basket of shares, bonds or other investments, both in South Africa and abroad, the fall in the price of one share or bond can be offset by a rise in another.
2. You can trust in affordability
Investing with a group of people means you to get access to a wide range of shares, bonds or other investments that won’t cost you the earth.
3. You can trust an experienced asset manager
You can be more confident if your money is invested by someone with years of experience and a deep understanding of the markets, backed by a team of investment professionals.
4. You can trust regular disclosed information
Transparency comes from quarterly statements showing how your investment has performed. You can then also see how it has performed relative to benchmarks and other similar funds.
5. You can trust in the protection of the law
Investing in something that is regulated by an Act, such as the Collective Investment Schemes Control Act, gives you the peace of mind that the people investing your money must act prudently and professionally.
6. You can trust when you have control
If you can start or stop investing at any time, and even have your money back in your account within days, you have power.
TRUST equals:
This is what makes a Unit Trust an easy, affordable, professionally managed investment with the potential to grow your money
