Start Investing in Unit Trusts

From Financial Literacy Wiki

How does one start investing in unit trusts? There are two basically two ways of investing in unit trusts. One way is through an online distributor and another way is through a distributor, usually the banks or financial advisor/planner.

Through an Online Distributor

Online distributors are actually unit trusts distributors that distributes mainly through the Internet. There are many online distributors in Singapore. For instance, Fundsupermart, DollarDex, Philip Securities. This channel of distribution is usually better for people who are more savvy in investing. This is because these distributors have research reports or financial news available on their websites and there is no specific person that will advise you how to build your investment portfolio or advise you on which unit trusts is suitable for you or the portfolio you are building. Savvy investors will have to sieve through numerous research reports and financial news to decide which unit trusts is suitable for them. Such a process can take a long time for novices, whereas savvy investors would know which information to look out for.

Another advantage of using online distributors to purchase your unit trusts is that their sales charges are low, compared to physical distributors. Usually fall within the range of 1.75% to 2.5% and during promotions, it can go to as low as 1.25%.