Common questions about unit trusts

Are unit trusts very expensive?
You can start up a unit trust with S$5,000 or you can start a monthly investment plan with S$1,000 and make a monthly minimum contribution of as little as S$100.

Can I get easy access to my investment?
Unit trusts are very flexible and you can buy and sell unit trusts on any (dealing) day. Your proceeds can take as little as seven working days to access.

Do I have to make a lump sum investment?
You don't need to make a large lump sum investment. We can also offer you a monthly investment plan where the initial lump sum is only S$1,000 or S$5,000 (depending on fund house) and the monthly contribution is only S$100.

Are they high risk?
Unit trusts obviously have an element of risk but less so than direct investment on the stock market. Risk is comparatively lower because it may be spread over a number of years, a variety of commodities, currencies or countries.

Are the returns low?
Because unit trusts are comparatively low risk they therefore can offer lower rates of return in comparison to high-risk direct investments. However, over the long-term, your overall returns is more stable making them an attractive long-term investments.

Are they difficult to monitor?
Professional fund managers do this for you, so you don't have to monitor them on a daily basis. They have access to information and research statistics from economists and analysts around the world, and keep you updated of major changes.

Are the commission fees high?
Unit Trust fees are actually much lower than if you were to set up an individual fund or investment. This is due to economy of scale. As a large number of investors are involved in a fund the fee cost is therefore shared and thus reduced.

General disclaimer
Investment involves risk. The prospectus of the funds should be read for further details. The price of units or shares and the income from them may go down as well as up and any past performance figures shown are not indicative of future performance. The information contained on this website is intended for Singapore residents only and should not be construed as a distribution, an offer to sell, or a solicitation to buy any securities in any jurisdiction where such activities would be unlawful under the laws of such jurisdiction, in particular the United States of America and Canada. Please refer to the full Unit Trust disclaimer for further important details.