For some people, growing your money while working at the same time, can feel like a lot of work. For a busy person, it may be time consuming. And for a new investor, choosing the right investment can feel daunting.
If you’ve ever had the idea of getting someone to manage and grow your money, unit trusts may be an option for you.
What are Unit Trusts?
Unit trusts are a collective investment scheme which brings the money of investors together into one pool that’s managed by an asset manager.
According to our Head of Wealth at EasyEquities, Craig Turton, a Certified Financial Planner (CFP) - unit trusts are the way to go.
“The funds are run by a fund manager and their aim is to grow the overall value of the unit trust, by investing the fund’s assets, usually by buying stocks, bonds or a combination of these two securities which are listed on the stock exchange,” says Craig.
“The stocks or bonds that are bought are referred to as the fund’s holdings and all of the funds together make up the portfolio. A unit trust can also invest in property, cash as well as overseas instruments. Which can give you immediate diversity in one fund.”
Keep mind that the value of a unit trust is determined by the performance of the overall assets owned within the unit trust.
How safe is my investment?
As an investor of unit trusts, you face lower risk because unit trusts are diversified. This means, if one of the assets in the unit trust start to depreciate, it can be offset by another one appreciating.
One of the great benefits of unit trusts include the fact that any profits made from the assets in the unit trusts are transferred to owners of the units (investors), instead of being reinvested back into the fund.
Unit Trusts on EasyEquities
EasyEquities has made unit trusts convenient, easily accessible and affordable to anyone who wants to grow their money. You can now invest in unit trusts the same way you do with shares and ETFs: with whatever amount you’ve got.
After a looking into over 200 unit trusts, our experienced wealth team researched and identified the top 60 best performing, to feature on the platform.
What does this mean for you?
The worry of searching for the best performing stocks is now over, as you can now just pick unit trusts that have been carefully selected and put together by experts and asset managers.
And Craig adds, “We believe that people will be able to grow their income and feel comfortable in their choices no matter what their investment experience has been in the past.”