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Three investment trends setting the unit trust investing arena alight this year

by , 04 March 2014

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 investing trend #1: Go global
While investors are often scared of taking their money offshore, a home-based investment trend opens you up to all sorts of problems. Especially locally, where one of the biggest drivers of our economy (commodities) is also one of the most volatile.

So it makes sense as an investor to seek the safety of global exposure. And what better way to do that then through unit trust investing? It enables you to access markets in a cost-effective manner as well as gives you access to investments that we don’t have on our local market (for example, biotech stocks).

Unit trusts investing trend #2: Brand-name investing
Increased fear means people are looking for tried-and-trusted brands that have staying power. The same goes for unit trust investing.

“People want something they know,” Robert Martorana, Right Blend Investing portfolio manager explains to CNBC. “When they feel confused, they go with the big brand. It’s not about chasing returns, but a comfort level with the manager and strategy.”

Unit trust investing trend #3: Safety of income
And finally, with interest rate hikes and inflation eating into your wealth, investors are searching for income. Unit trust that provide fixed income are a good way to achieve this.

So there you have it. If you’re confused about which unit trusts to pick, consider these three investment trends. They make sense in the current environment and can point your investment portfolio in the right direction.

Three investment trends setting the unit trust investing arena alight this year
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