#75. Why I Invest In Unit Trust

How I Got Started Investing In Unit Trust

It was many years ago, perhaps 10 years ago. My friend introduced me to the concept of unit trust investment. He asked me to invest in unit trust to make my money work harder. He explained that the earlier I started investing, the more money I would have for my retirement. Or having enough money later to buy my first house, money for marriage and later my child's education.

I have absolute zero knowledge about unit trust at that time. Here's how he explained in very simple ways:

You put in your money of RM10,000 in a unit trust fund. Then other people like you who are interest to make their money harder also put in their money in the same fund. This fund then becomes a big. The money in this fund will then be used to buy up good stocks and shares from good companies. When the market goes up, the unit trust fund price will go up too. And that's how you make money.

He said more:

You can make your money work harder than leaving in fixed deposit. Good thing also is that you can withdraw the money at any time but you have to wait for the maturity date with fixed deposit.

I got interested with the idea that my money can work harder for me.

My friend went on:

There is a risk of course. That's where as your consultant, I will guide you with the right investment strategies. The risk will be minimized because of a few reasons. First, you will be adhering to tested investment strategies. You will be using dollar cost averaging and switching and rebalancing. Second, I will show you which fund is good for long term investment and he shared about index fund and other equity funds.

I asked him to explain further about the strategies. These are the same strategies that I have been using till today. He also explain that we should buy low when no one else would.

Best of all my friend told me about the 4 easy ways to invest in unit trust.

I must thank my friend here for opening up my mind to unit trust investment. It has opened me up to accept other form of investment too such as gold.

Investing in unit trust need not be complicated. The best way is to think of it as saving regularly. Yes, regular savings and investment is the best. It means you are applying the dollar cost averaging strategy to maximize your return. Study the market that you invest in and know at least the basic of what is going on around the world.

Investing in unit trust also takes away the hassle of monitoring it daily like you would with shares investment or other volatile trading. Your investment is managed by a full time professional fund manager. His job is to make sure that the fund earns a profit. It's a tough job and he is doing it for you.

So you put your money in regularly and sit back. Let the consultant and fund manager do the rest of the work.