Saturday, July 14, 2007

Why must you invest in Unit trust ?

Why Must you invest in Unit Trust ?
1. Diversification - Diversify the way you manage your $.
2. Dollar Cost Averaging - buy the units at average price to make more profit.
3. Liquidity
4. Capital Appreciation/growth - E.g During buying Each unit cost 0.05 cents 3 years later the same unit cost 0.10 cents , so the price per unit appreciated by 0.05 cents.
If you bought 4000 units for RM1000 (selling price @ 0.25cents) , capital appreciation of 0.05 cents will result selling price to 0.30cents.
4000units x 0.30 cents = $ 1,200 .
Conclusion : You made profit RM200

No comments: