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.