How to choose a Unit Trust

2021 was an excellent year for our unit trust managers in South Africa. EasyEquities continues to listen to our Investors and add the most popular and wanted unit trusts.

This article discusses the wonderful returns in 2021.

When you jump into your Easy Account and click on INVEST NOW and then move down to the Unit trust tab. You will be presented with a filter that asks for what type of unit trust you are looking for. The range is either Income, Balanced, Property, Local Equities or Global Equities. This is the first decision you going to need to make when choosing a unit trust.

Some guidelines and thoughts around where these options could fit into your portfolio:

Income – For an investor looking to park money for a short period of time. Up to around 3 years.

Balanced – these funds are great for retirement funds or for an investor looking for moderate risk in their portfolio with diversification between all asset classes. (Cash, property, bonds, shares, offshore). Ideal time frame is 3 – 5 years to remain invested.

Property – For an investor looking for exposure to listed properties. Time frame is 5 years plus.

Local Equities – For the long-term investor, 5 years and more. The funds look for growth over the long term by investing in various share locally.

Global Equity – Also for the long-term investor. Goal for the fund manager is also capital growth over the long term.

Essentially your own investment objects are important when selecting which type of unit trust you need to invest in. Same size fits all, is not applicable here.

We would then suggest that you visit our wealth portal to filter the details of each unit trust manager. You can filter according to philosophy, fund size, fund classification, costs and income or dividend distribution.

Visit our site HERE

A unit trust manager is required to have a MDD (Minimum disclosure document) which needs to discuss important info on the fund. There is really useful information on this document. This can be access through the EasyEquities platform.

Have a look at the section on the funds aim or objectives and see if this ties in with your reason for investing.

An example is on this is the Emperor Global Equity Fund, it states there that the “fund is suitable for investors who are looking for outperformance relative to the S&P 500 total return index and want long term capital growth”.

Another example is the Fairtree Flexible Income Fund, it states that “The fund will endeavour to protect capital and maximize income growth”.

Both are very different funds with different objectives. Hope this helps you in making an informed decision.

All the best for your investment journey.

Win your retirement with EasyEquities - Check out our Invest For Your Future Campaign on how? T's and c's apply.

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Any opinions, news, research, reports, analyses, prices, or other information contained within this research is provided by an employee of EasyEquities an authorised FSP (FSP no 22588) as general market commentary, and does not constitute investment advice for the purposes of the Financial Advisory and Intermediary Services Act, 2002. First World Trader (Pty) Ltd t/a EasyEquities (“EasyEquities”) does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information (i) contained within this research and (ii) received from third party data providers. You must rely solely upon your own judgment in all aspects of your investment and/or trading decisions and all investments and/or trades are made at your own risk. EasyEquities (including any of their employees) will not accept any liability for any direct or indirect loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on the market commentary. The content contained within is subject to change at any time without notice.

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