021 0229 7560 david@pilgrimfs.co.nz

Unit Trust

These are investment vehicle that pools investor’s money and invests it in different assets. They trade like stocks, and by owning shares in a mutual fund or units in a unit trust, investors with limited funds and knowledge of the market can lower the risk and be exposed to diversification. They are managed by professional fund managers who invest in a wide spectrum across different asset classes, security types, and risk levels. Predicting the low and high turning points would make investment very profitable but is absolutely difficult, and a fund might be the next best option, because of the following:

  • Establishing a regular savings plan as dollar cost averaging, eliminates the emotion of market volatility and economic conditions
  • More units are bought when prices fall, and fewer units when prices rise; and over the long term, the unit costs averages out
  • An unexciting investment strategy that reduces market uncertainty and risk, and over time can be fruitful in reaching goals
  • Fund liquidity, distributions received as a result of interest and dividends earned, and capital gains from asset sales

Contact us

David Luke, Financial Advisor
Phone: 021 0229 7560
Email: david@pilgrimfs.co.nz