Unit trusts
You work hard for your money. Now make it work for you. You want to create wealth by buying shares in leading South African companies or create an income for retirement; you just don’t know where to start.
Why invest in a unit trust?
By investing in a unit trust fund you can create wealth by tapping into the expertise of South Africa’s top investment managers irrespective of how much you have to invest.
A unit trust gives you complete flexibility:
- You can invest any amount from as little as R200 a month or a R5000 lump sum
- You can buy and sell whenever you want- there is no lock in period
- You can choose a unit trust portfolio that meets your investment needs
What is a unit trust?
A unit trust is an investment product that pools the money of many investors and invests these funds into a portfolio consisting of assets such as blue chip shares on the JSE, government bonds and listed property. By pooling your resources with many other investors you are able to access investments that may not normally be available to an individual.
This portfolio is managed by leading investment managers whose only focus is to maximise your returns. They do this after conducting extensive research. Your investment in a unit trust is also well protected and regulated by government legislation and industry standards.
To keep track of your investment in a unit trust, the fund is divided into equal portions called units. Each unit has a price, or net asset value (NAV) based on the underlying value of the assets that make up the investment portfolio. When you invest in a unit trust, you are allocated units according to the amount of money you invest and the price of the units on the day you buy them. For example if the price per unit is R10.00 and you invest R1000, you will receive 100 units. Units are priced daily because the value of the underlying assets in the investment portfolio changes every day in line with market movements. For example if the unit price rises to R12.00, your investment would be worth R1200.
Unit trusts offer a wide range of fund options for investors. For a low risk investment you can select a unit trust that invests in money market (or cash) instruments and longer term investors who need capital growth can select a unit trust that invests in shares on the JSE.
