Welcome to Study Room, where you can ask questions and receive answers from other members of the community.
0 like 0 dislike
940 views
in Grade 12 by Master (699k points)

1 Answer

0 like 0 dislike
by Master (699k points)
 
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.

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

1.1k questions

508 answers

57 comments

21 users

...