If you're looking to invest in a tracker fund, then you have two choices at your disposal. You can opt for an exchange traded fund that tracks an index. Or you can opt for a unit trust fund that tracks an index. So what's the difference? And which one is better suited to you? Let's take a closer look…
The difference between a tracker unit trust and a tracker ETF
The aim of tracker unit trus... ››› more
If you want to invest in unit trusts, you can either opt for an active fund or a passive fund. Active funds generally have higher fees, but with that comes the promise of better performance. Passive funds aim to track the performance of the market. Their fees are lower than active funds. Even though active funds promise better performance that comes with higher fees. So passive funds can be a good... ››› more
As a consumer, you use a wide array of financial products. You buy insurance for your car and house. And chances are you have a bond on your home. But when it comes to shares, the very thought of selecting a few to invest in can put many people off. But that's where unit trusts come in. They do the picking for you. Let's take a closer look at the basics of unit trusts…
What is a unit trust fun... ››› more
“How much of my portfolio should I invest in unit trusts or shares?” That's the question on nearly every South African investor's mind. The answer to it, however, is different from person to person based on a number of factors such as: How much capital you have? How risk-averse you are? If you're still working or are retired? Whether or not you are trying to diversify your portfolio? And what ... ››› more
Money-market funds are cash-based unit trusts that invest money in low risk instruments such as government treasuries, banks, financial institutions or blue chip companies. This said, a money-market fund's objective is still to attain a level of profit without any undue risk and capital loss. But are they good investments and what are the risks involved? Today, we explain…
Three benefits of i... ››› more
The Association of Unit Trusts has devised a unique two-tier approach to categorise unit trusts. We quite like this approach, because it gives you a wide view of what's available in the world of unit trust investing. Here's how the two-tiered approach can help you pick the best unit trust for your portfolio…
The first tier: Where will your unit trust invest?
1. South African (domestic) fu... ››› more
Both unit and investment trusts pool the savings of their investors to buy a wide range of equities. But these two types of investments vary in several important ways. If you want to invest in either of them, it's important you know the differences.
Four ways unit trusts differ from investment trusts
#1: Unit vs. shares
As the name suggests, when you buy a unit trust you buy units. And ea... ››› more
If you have a portfolio packed with unit trust, you probably think you know exactly how to pick the best unit trust to invest in. And maybe you do. But research shows most unit trust investors forget to review at least one of these four crucial unit trust investing facts. And it's putting their returns at risk…
Check these four crucial factors before investing in unit trust
Here are the t... ››› more
Smart investors know that to get good returns, they need to spread their risk across four principal asset classes: Cash, bonds, equities and property. And one of the best ways to do that is through unit trust investing. Today, we look at how property income unit trusts can help you diversify your investment into property and cushion your risk while achieving stable returns in other asset classes. ... ››› more
Not all unit trusts are created equally. In fact, studies show as many as 66% don't even beat the market every year. That means you need to be selective when picking the best unit trusts to invest in. Today, we teach you a great secret that can help…
The secret to picking the best unit trusts to invest in
The experts behind The South African Investor have a technique they find works ver... ››› more
When it comes to unit trust investing, fees and charges are taken out of your investment before your money starts working for you. And they tend to be hidden away and brushed aside by all those eager-beaver sales people. But that doesn't mean they don't matter. In fact, they can make or break your portfolio. Here's what you need to know about the costs involved BEFORE you pick the best unit trust ... ››› more
If you're the kind of investor who wants someone else to do all the work for you, you're probably looking for a way to fill your portfolio with a host good unit trusts. If that sounds like you, listen up. Wise investors know that the best consistent long-term investment returns only come from sound asset management, says MoneyWeb. And that means you have to have the right financial planner in your... ››› more
When it comes to unit trust investing, you have a variety of options. One of them is income unit trusts. These funds are similar to money market funds, but are one step up on the risk ladder. Income unit trusts are particularly useful if you want income levels that are better than those you'll get from a bank deposit or money market fund. Here are the benefits of investing in these unit trusts… ... ››› more
Not all unit trusts are created equally. In times of market uncertainty like we're currently experiencing, that can only mean one thing: If you want to make money, you need to pay attention to the market's trends and follow them. Here's what you should do when it comes to picking unit trusts to invest in this year...
There are three big trends for unit trust investing this year
Unit trust i... ››› more
When it comes to unit trust) investing, South African's have always played the market safe. But that trend is changing, says Leon Campher, the chief executive officer for the Association of Savings and Investment South Africa (Asisa). And it's leading to a rise in appetite for multi-asset unit trusts.
The unit trust investing horizon is changing
South Africans have always perceived unit tru... ››› more
Disclaimer FSP Invest, a division of Fleet Street Publications (Pty) Ltd, is a research house and not a registered broker, financial advisor or financial service provider. Our editors and customer services teams also do not give personal investment advice. The advice in this website is general advice only and may not be appropriate to your particular investment objectives, financial situation or particular needs, so before investing or if in any doubt about your personal situation, you should seek professional advice from a stockbroker or independent financial adviser authorised by the Financial Services Board.
We research our recommendations and articles thoroughly, but disclaim all liability for any inaccuracies or omissions found on this website.
Remember: Never invest more than you can afford to spare and that the value of any investment, and the income derived from it, can go down as well as up. The past is not necessarily a guide to future performance.
Editors or contributors may have an interest in investments commented on in this website.