A unit trust fund is a professionally managed investment scheme that pools investors money for a specific goal as declared by the investment objective of the scheme. It aims to match selected performance benchmark through interest income, dividend income and capital appreciation in the medium to long term by investing in a broadly diversified portfolio of shares, bonds and other relevant financial instruments.
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Tuesday, September 20, 2011

Understanding the Prospectus

A prospectus is an  important document that you should read before committing yourself to any investment.  It serves as a guide for you to know what to expect when you invest in a specific fund.
As there are a wide range of  funds with various investment objectives and risks involved, investors need to make wise decisions in choosing suitable funds for themselves.
Some of the key elements to note in a prospectus are:
* Investment objective
* Investment strategy
* Risk factors
* Investors' profile
* Financial performance
* Fees and charges

A potential investor can then make an informed decision to choose a fund that matches their investment objectives and risk tolerance upon knowing the key elements of the fund. The  prospectus is usually  valid for one year, thus get the most recent prospectus.

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