Selecting The Right Unit Trust - How Do I Find A Unit Trust That Fits My Objective?

It used to be simple selecting a unit trust. Today, there are a multitude of different unit trust funds available in the market that making that choice is no longer easy. Perhaps a simpler way is to first identify your investment objectives. If you want your money to grow a larger sum in the future to pay for an objective and your risk tolerance is higher, you may choose a growth fund to do the job. On the other hand, if you need an ongoing income stream to pay for expenses and your risk tolerance is low, a better choice would be a bond fund. You may have different investment objectives, risk tolerance and time horizons at any one time, which warrants owning a mixture of different unit trust funds for different investment purposes.

Why Should I Start Investing Today?

Today's decision should depend on tomorrow's needs. There is a direct relationship between the amount of money you need to accumulate and the number of years you have to do it.

For example, if you plan to have a RM120,000 education fund within 20 years and expects an annual rate of return of 12 percent, you have to invest only a little over RM120 a month. Wait another 5 years, you will need over RM240 a month. Procrastinate another 10 years, you will have to put in almost RM1,470 each month!

Time can be a real asset when planning for a child's education or our retirement. The more time we have to save, the fewer ringgit we need now. Do not let time slip away.