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When we hear the term ‘unit trust’, our minds automatically paint a picture of Beverly Hills trust fund babies aka super rich kids. But really, anyone can have a unit trust account! If you’re reading this, you’re probably interested in investing in unit trusts. Let us break it down for you. 

What is a unit trust? 

A unit trust is a fund made of various assets, such as shares, bonds, real estate, and more. The portfolio is then divided into "units" that are then sold to investors (you). The money you’ve invested will be pooled together with money from other investors by a fund manager for investments. The investment returns will then be given back to you based on each individual’s contribution. Find out more about unit trusts in our "What are Unit Trusts and How do They Work" article. 

Why should you invest in unit trusts? 

Whether you’re an investor looking to make safe, stable investments and to keep losses at a minimum or an aggressive investor willing to take risks for higher returns, you can find unit trust funds for every risk appetite and investment goals. You can also discover your investment personality

right here and reap the many attractive perks unit trust offers below: 


1. Diversify


You know the saying that goes, “Don’t put all your eggs in one basket”?

Well, in this case, reduce your investment risk and don’t invest all your money into one investment. Unit trusts diversify your investments in more than 50 public listed companies from various sectors such as consumer-based products, oil and gas, palm oil, health, communications and more. There are also unit trusts that do investments abroad. 


2. Low Capital Investment


Anyone can have a unit trust fund due to its low capital investment. As unit trusts are a collective investment scheme, the capital investment can go as low as RM1,000 with each additional investment as low as RM100. This makes it affordable and easy for investment beginners and those with low funds. 


3. High-Liquidity


The term liquidity here refers to how easy it is for us to attain profit from our investment without being charged any withdrawal fee before the investment is matured. Investing in unit trust allows you to withdraw your investment at any time depending on the current price without any penalty.


Hence the reason why unit trust has a high liquidity risk as compared to properties that have low liquidity. For example, if you own properties, you will need to find a buyer that agrees to your selling price or you may even have to sell your property below market price. 

How to make investments in unit trusts? 

Now you know the benefits and advantages of investing in unit trusts, it’s time for you to actually invest in a unit trust. Don’t worry, we’ll walk you through the wide variety of ways of investing in unit trusts. 


1. Invest online via CIMB Clicks 


Conveniently invest online through CIMB Clicks, just be sure to register for a CIMB Clicks account. Login to your account, select ‘Apply & Invest’ and go to ‘Unit Trust’ under the Investments category. Now, you can easily open your CIMB Unit Trust Account to start investing in any unit trust funds of your choice. Not only is it easy, but you will also get access to a personalised Risk Profile. With CIMB Clicks, you can invest anywhere, anytime. 


2. Make one time lump sum purchase 


A lump sum purchase is when you invest your money, in a lump sum amount, into a unit trust. The initial investment made will then increase over a period of time as the fund earns an income. When you redeem your units, the unit redemption rate will reflect the accumulation and compounding invested capital over the relevant period. The compounding effect over a period of time is what makes the investment into unit trust funds extremely attractive. 


3. Regular or monthly investments


You can also invest in unit trusts by making regular, monthly investments to their fund. Commonly known as dollar-cost averaging, this method is when you make regular contributions over a period of time to which the sum accumulated at the end of the period will also increase. This is when the redemption or sale price of the units held shows all the accumulated contributions. It also includes returns generated from the total investments from the initial investment. The same form of savings is also used by the Employee Provident Fund (EPF).  


Whether you are a seasoned investor or a newbie learning the art of investing, unit trust investments are suitable for all. Just like any other investments, be sure to research the best unit trust for you to commit to. Eager to find the best-performing unit trusts? Select the right fund for you with our "How do you pick the right unit trust" article! 


You can also start investing in unit trust easily via CIMB Clicks! Head on to our Unit Trust page to learn more. 

This article is for informational purposes only and CIMB does not make any representation and warranty as to the accuracy, completeness and fairness of any information contained in this article. As this article is general in nature, it is not intended to address the circumstances of any particular individual or entity. You are advised to consult a financial advisor or investment professional before making any decisions based on the information contained in this article. CIMB assumes no liability for any consequences arising from your reliance on the information presented here.