{"id":34522,"date":"2018-06-26T10:03:54","date_gmt":"2018-06-26T02:03:54","guid":{"rendered":"https:\/\/www.imoney.my\/articles\/?p=34522"},"modified":"2018-07-17T16:20:22","modified_gmt":"2018-07-17T08:20:22","slug":"pmb-unit-trust-invest","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/pmb-unit-trust-invest","title":{"rendered":"6 Important Factors To Consider Before Investing In Unit Trust"},"content":{"rendered":"

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If you are a newbie in the world of investment, your first thought would likely be either of the two outcomes \u2013 lucrative profit or extreme loss.<\/p>\n

While it\u2019s true that all investments come with a risk, there are steps you can take to minimise the chances of loss in your investments.<\/p>\n

Your risk appetite will be one of the fundamental factors that decide what type of investor you are or will become. Your risk profile will help you determine the breakdown of assets in your portfolio \u2013 also known as asset allocation<\/a>.<\/p>\n

The oldest trick in the book to minimising risk is portfolio diversification. As many investors will tell you, \u201cdon\u2019t put all your eggs in one basket\u201d, which means to avoid concentrating your funds into one type of investment and instead, flow your funds into different assets.<\/p>\n

However, if you are new, the best way to dip your toe in investment is by investing in unit trusts.<\/p>\n

A unit trust<\/a> is a portfolio of different assets, which include a mix of shares, bonds and real estate among other investments. The portfolio is divided up into \u201cunits\u201d, which are then bought by investors. Unit trust funds are professionally managed by fund managers.<\/p>\n

But, investing in unit trusts also means your funds are pooled together with other investors who have also bought units. Hence, any gains will be distributed among all the investors according to your investment amount. This is known as income distribution, which can be made up of shares, capital gains, dividends and profit depending on your fund type.<\/p>\n

As with all investments, investors are encouraged to do their due diligence to understand the investment product before putting their money into any funds. Here are six things you need to know before investing in a unit trust.<\/p>\n

<\/span>1) Identify the best performing fund <\/strong><\/span><\/h2>\n

There are numerous unit trusts out there to choose from but evaluating the reputation and credibility of the fund and its issuer is key to choosing the right one for you.<\/p>\n

How do you know if a fund is performing well? Here are two factors that indicate a fund\u2019s performance:<\/p>\n