The Wealth Room


About Unit Trusts

Key Benefits of Investing into Unit Trusts

  1. Investing in a unit trust is a pretty cost-effective option

When you invest into Unit Trusts, you are able to put your funds together with other investors in order to purchase units or shares in other companies. By doing this you no longer have to fork out big amounts of money to buy shares and get the same diversification.

Asset Managers will also be able to pool all Investor’s funds together and negotiate better rates for shares in companies or the different asset classes.

  1. You can spread your investment risk

By buying into Unit Trusts you increase your exposure to a wider range of investments at a much lower price. Not only do you get a lower price, but it also simplifies your investing opportunity into various asset classes in one investment. This gives you great diversification and that means your investment will be spread amongst different investments that behave differently in certain economic environments.

What roles do investment/ asset manager’s play?

For a very small price you have access to investment management expertise that set up the unit trusts that you would like to invest into. Not very often will you have the expertise of Actuaries, Charted Accountants and Lawyers at a low price of 0%-1.5% of your investment.

Investment/ Asset managers spend hours doing research so that they can make the right decisions about which underlying assets to buy, in line with the unit trust’s objective and rules.

This then gives you the peace of mind to carry on doing what you’re best at, and leave the management of the Unit Trusts to the experts.

The Best way to Access a Unit Trust

What Fees and expenses can you expect regarding Unit Trusts?

Unit Trusts have very transparent fees for you to have a look at before you decide to invest into them. These fee structures are also very regulated in the industry, so you can have peace of mind that you are getting the best value for money.

Each unit trust must also publish a fund factsheet showing the unit trust’s objective, fees and other information and this is available to you at any time.


All Video Clips and Pictures supplied by Allan Gray



September 1, 2014


Grant van Zyl

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