Why Should I Investing in Unit Trust?

unit trust

Unit trust or mutual fund is a financial vehicle through which individuals may invest their money. The idea behind unit trust is better returns through collective investing. In other words, it means pooling the investments of many investors, individuals and institutions.

Unit trust is getting popular nowdays due to potentially higher return when compare to fixed deposit or EPF saving. Furthermore, EPF is providing an option to withdraw some or your EPF saving for the purpose of investing in unit trust.

If you still wondering whether to invest in unit trust or not, you should see the reason why you should.

  1. Being well-diversified financial instruments, they are less risky than if you were to invest in individual stocks.
  2. You can reap investment opportunities from all over the world, as they are invested globally and into different financial instruments.
  3. They are managed by professional fund managers who aim to obtain higher returns for your money. You do not need to monitor equity markets closely for fluctuations.
  4. There is a wide selection of unit trusts available to meet the different investment objectives of investors. Staying invested over time, these returns can compound to very attractive amounts, unlike savings deposits.
  5. Fund houses are bound by agreement to purchase the unit trusts back from you should you decide to sell your holdings, at the prevailing price on the date of sale, regardless of the number of units sold. Liquidity gives flexibility.

Source : FundSupermart

12 comments… add one
  • unit trust i believe is

    low risk low return…

    betul ke ? ini aku punya perception. Ada jugak REIT.
    But bila Fund Manager buat investment, untung lebih diaorg akan simpan sendiri…

    betul kan ?


    • Unit trust, I believe is in medium risk & return category. I don’t think Fund Manager they can keep the profit for themselves as they need to declare their NAV everyday and they are subjected to audit too.

      Anyway how is your property investment? I may want to learn from you. Quite interested in this area now.

  • of all the approved unit trust… how do we establish which are the performing ones? been talking to a few and pretty much the same information…ie. higher than epf… minimum (verbal) 10% returns and etc.

    Which is the market leader in this… there are also some into local markets and some into foreign markets.

    Which are the preferred funds for both this type?

    Anyone have any insights into this?

    • John, you have to look at the past performance of the funds. You may look at the appreciation of the NAV & funds distribution.

      There is no guarantee that you you will earn more than EPF dividend. Some of them maybe worse. Don’t just trust at what the sales person tell you.

      Public Mutual is performing considerably well but you must look at the individual funds.

  • Hi there,

    I have some doubts, you said that Unit trust potentially gives a better return compared to EPF and Fixed Deposit but how true is this? because we have many fees to pay for Unit trust, and everytime when we get ROI it is being re-invested into the funds which is again subjected to the said fees. The dividend earned from the funds performance is also subjected to tax compared to EPF (if your contribution is less than than the taxable limit) which is not subjected to Tax. Kindly clarify my doubts

    • Hi, unit trust investments is not for short term. You only pay the buying fee only 1 time and the return gain from unit trust can be much higher than that if you hold it a couple of years.

      • Understood, I know that unit trust is not suitable for short term investment but my question is, everytime when we get our return the agents tend to re-invest it on available units in the same fund, so at that time we’ll be charged many fees. Does that mean that we are not actually making much??

        I do have another question, for unit trust investement which is better? Using cash in hand or EPF money?? Why agents tend to suggest customers to make use of EPF money??

        • If you investing long term, the fees is small when compare to the total return you gain. Of course this are fees but think about the total gain.

  • The agent I know also said that most people choose unit trust investment through EPF, I also have no idea why agents suggested EPF money. Any benefits from that?

    • It is very normal for the salesman to do that because they know most of employed people do have saving in EPF & but not all have extra pocket money to invest. Their main agenda is to get people to join them & get the commission.

      On the positive side, actually it is true that invest EPF money is more beneficial as the fees is much lower (normally about 2% lower).

      In the end, don’t trust whatever agent told you. Do your homework first!

  • Anyone can tell whether there is any unit trust with guaranteed return above the bank interest rate? I was told there are. Kindly enlighten this rookie investor. Thank you.

    • There is no guarantee return for investing in unit trust. You may even lost your money.


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