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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.

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