
OLD MUTUAL UNIT TRUSTS SELLING FORMIMPORTANT INFOR


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People also ask
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What are the disadvantages of unit trust?
What are the disadvantages of unit trusts? Unit trusts generally invest only in listed financial assets (traded on an exchange) and therefore do not provide opportunities for investment in tangible assets such as gold coins, diamonds, stamps, or unlisted assets like privately held companies or hedge funds.
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Is my money safe in a unit trust?
Overall Risks: Generally speaking, unit investment trusts will inherit the risks of the underlying securities, and are not appropriate for investors seeking capital preservation. There is no assurance that an individual UIT portfolio will meet its objective.
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What is the main risk of a unit trust?
Market Risk If the fund hold assets that are illiquid, or are difficult to dispose of, the value of the fund will be negatively affected when it has to sell such assets at unfavourable prices.
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What are the downsides of a unit trust?
Investing in a unit trust carries risks similar to other investments. The unit value or income may decrease, and an investor's principal is not guaranteed.
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What is the golden rule of investing in unit trust?
Successful unit trust investment hinges on strategic decisions. Diversification is the key to spreading investments across various assets to mitigate risks. Aligning investments with your risk tolerance and regularly monitoring fund performance ensures adaptability.
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How does unit trust work at Old Mutual?
Unit trusts offer an easy, convenient way to invest. Simply put, a pool of investors' money (money from people like you and me) is used to invest in financial instruments such as equities (shares) and bonds. This pool is then divided into equal units where each unit contains the same proportion of assets in the fund.
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What are 2 types of returns can you expect from investing in unit trust funds?
The return on investment of unit holders is usually in the form of income distribution and capital appreciation, derived from the pool of assets supporting the unit trust fund. Each unit earns an equal return, determined by the level of distribution and/or capital appreciation in any one period.
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Why not invest in unit trust?
It is important to understand that unit trusts do not offer a fixed rate of return: your principal value will fluctuate, and the return on your investment is not guaranteed. The rates of return fluctuate with market conditions due to changes in valuation of the securities that a fund invests in, or other factors.
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