What are the benefits of mutual funds/unit trusts?
Benefits of investing in funds include: • Access to global investment opportunities: Your investment horizon can be broadened because there are different types of funds that can provide a convenient and cost effective way to capitalize on both local and overseas investment opportunities. • Diversification: Diversification may take different forms, e.g. along geographic or industry lines, or amongst different securities or issuers. The essence is that by investing in securities that have a low correlation, a portfolio can help you spread out the risks and achieve a better risk-return pattern than individual securities. • Access to professional investment management services: You can enjoy the services rendered by fund managers. Fund managers research and analyze the markets and securities for the funds. Fund managers will determine which securities to hold, when to buy and sell.
