Choosing the Best Unit Trust - 2
unit trust performance doesn't like share market even if they're correlates. when considering share market, ones has to look art the history, performance, record, etc. of the particular company. when considering unit trust, it is important to get to know the unit trust company and the funds' performance instead of considering the companies they invested in.
unit trust's performance is slightly different than stock market. stock market graph is very obvious ups-and-downs because the objective is to get income in short term (unless the company is very2 stable so you can hold it longer). for unit trust, the graph's trend of ups-and-down is not obvious, but for long term it should go up and up. see the graph below:
the upper graph is stock market's trend (in general) where the below one is unit trust trend (in general). see the trend? for a short-term investment, buying at a really low price and sell at a really high price will be significantly relevant in a very short time. for a long-term, buying at lower price it relevant as well but ones has to consider the company's ability to retain the higher price in short time. remember unit trust is slightly different than stock market. it's not as aggressive as stock market as it is a diversified investment policy.
another thing to keep in mind is that, unit trust is not totally depend on where does it invests in but who manage the investment. even if you invest in a very good company but if you're not a good investor, you'll end up in deep debt. except you're lucky. so goes with an investor who invests in a-not-so-good company, if he is good and smart enough, he would be able to gain big money.
this starting new year a good time to look for the best unit trust company. the edge-lipper and standard's & poor rating is in the store to be checked.
happy investing!
unit trust's performance is slightly different than stock market. stock market graph is very obvious ups-and-downs because the objective is to get income in short term (unless the company is very2 stable so you can hold it longer). for unit trust, the graph's trend of ups-and-down is not obvious, but for long term it should go up and up. see the graph below:
the upper graph is stock market's trend (in general) where the below one is unit trust trend (in general). see the trend? for a short-term investment, buying at a really low price and sell at a really high price will be significantly relevant in a very short time. for a long-term, buying at lower price it relevant as well but ones has to consider the company's ability to retain the higher price in short time. remember unit trust is slightly different than stock market. it's not as aggressive as stock market as it is a diversified investment policy.
another thing to keep in mind is that, unit trust is not totally depend on where does it invests in but who manage the investment. even if you invest in a very good company but if you're not a good investor, you'll end up in deep debt. except you're lucky. so goes with an investor who invests in a-not-so-good company, if he is good and smart enough, he would be able to gain big money.
this starting new year a good time to look for the best unit trust company. the edge-lipper and standard's & poor rating is in the store to be checked.
happy investing!
