The best unit trusts to suit your needs
Investment philosophy and ethics There is no one-size-fits-all option when it comes to unit trusts, as we all have different personalities and investment goals. Start by looking at the top asset managers in your country with excellent reputations. In South Africa, we recommend looking at Allan Gray, Coronation, Prudential and Investec to get you started. Then do some research on each company’s investment philosophy (how they buy and sell asset classes or shares to make you money) and see if you agree with their philosophy or not. After all, there's no point in investing in companies when you don’t believe in their ethics or investment philosophy. Age is important The younger you are, the more risk you are able to take when selecting a unit trust. The reason for thi
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Understanding Unit Trusts
Today we are going to discuss Unit Trusts and how Unit Trusts work. If you haven’t read my last 2 articles on Asset Classes and Asset Allocation, I recommend that you have a quick read through those first as they form the foundation for this post and for your best understanding of Unit Trusts. I assure you that understanding Asset Classes and Asset Allocation, will change investing for you forever. I am going to start at the very beginning and break down what Unit Trusts are. Unit trusts are when companies like Allan Gray (Asset Managers) buy Asset Classes on behalf of us in bulk and at a much lower price or a better interest rate on bonds etc. They then take the different Asset Classes and combine them into what we call Funds. For example all Asset Managers will have what we ca
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Become an Investment Specialist Today!
Yes you can become an investment specialist today! After going through Asset Classes last week, there is just one quick thing we need to look at before we move on to investing into Unit Trusts. I touched on Asset Allocation briefly in the last post, so in this post I will go through Asset Allocation in a little more detail so that you can build a better understanding and knowledge base. Asset Allocation: Asset Allocation is how you divide your investments between the Asset Classes. So it is deciding how much cash, bonds, property and equity you want in your investment. Asset Allocation is, in my opinion, one of the most important decisions you make when it comes to investing and achieving your investment goals. Before you go ahead and select which bonds, equity etc you want
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