Welcome to Study Room SA
0 votes
in Grade 12 by Master (947k points) | 1.3k views

1 Answer

0 votes
Best answer

Advantages of unit trusts:

  • Managed by a fund manager to buy shares on the stock exchange.
  • The investor has a variety to choose from/a wider range of shares and a lower degree of risk.
  • Safe investments, as it is managed according to rules and regulations.
  • A small amount can be invested per month.
  • Easy to invest in, as investors simply fill in several forms or invest online.
  • Easy to cash in when an investor needs money.
  • Fluctuations in unit trust rates of return are often not so severe because of diversity of the investment fund.
  • Generally beats inflation on the medium/long term.
  • Offer competitive returns in the form of capital growth and dividend distribution.
  • Fund managers are knowledgeable/experts/reliable/trustworthy as they are required to be accredited to sell unit trusts.

by Master (947k points)
No registration is required in order to post/ask, comment and or answer any question on this forum. Please note this website was created to help learners discuss their school work with other learners and teacher from anywhere around South Africa for free. Why Free? We generate our revenue through adverts to keep the forum running 24/7
Welcome to Study Room, where you can ask questions and receive answers from other members of the community. Members/Users are also allowed to answer any questions or add comments. If you think a certain answer is wrong or slightly incorrect' please use the comment button below the answer to add your suggestion.

Let's see how smart you are Click/Touch Here To help other students on their questions

1,832 questions
592 answers
1,039,439 users
Help get things started! Simple pick and answer 1 or more questions to help those who are in need of your help. This site was mainly created for grade 10 - 12 pupils to exchange questions and answers. I' the admin of the site do try answering some of the questions but just because of the heavy load of work I have to attend on the site as a sole admin.