Investment Strategies in Unit Trust

There are several strategies investors need to be aware of when investing in any Unit Trust; regardless of the company, regardless of the type of fund and regardless of the amount.

I was taught nine (there might be more) most important strategies of all.

1. Adopt a medium to long term investment plan
Investors need to be aware that this is a 3-5 (or 5-10) years investment plan.

2. Adopt a buying and selling at the right time
Investors need to know are they buying and selling at the right time

3. Adopt a regular investment plan
The reason behind this is to get the Average Cost per Unit as low as possible

4. Stick to the goal
Investors need to sit down with the consultant and set a manageable target i.e. 10% per annum

5. Don’t be too emotional
Put emotion aside. This is a medium to long term investment plan.

6. Monitoring is the consultant’s job
Investors need not to monitor their investment. It’s the consultant’s job

7. Know your objective
Investors need to know their investment objective. Retirement? Kids? Wealth accumulation?

8. Know your risk management
Investors need to know their risk management. Do they tolerate high risk? Do they tolerate medium risk?

9. Choose funds that are suitable to you
Islamic? Conventional? High risk? Medium risk?

It is unethical to guarantee returns to clients.

But what I can guarantee is that if any investor is following the nine strategies mentioned above, your money will work for you in Unit Trust.