Why Should You Invest In A Unit Trust?

Diversification

Unit Trusts typically invest in a number of instruments that are from different companies or different sectors and/ or geographic regions. Thus the poor performance of one company, sector or geographic region is not likely to have major adverse impacts on your investment as a whole.

Risk level awareness

A unit trust fund has an investment mandate and this gives an idea of whether the fund is a low-, medium-, or high-risk investment.

Safety of funds

A bank or financial institution not affiliated to the fund manager is appointed to look after the cash, shares or bonds owned by the fund. This means even if anything were to happen to the Unit Trust Management Company, your money will still be safe because it is held in a trust.

Statutory limitations

The Securities Act limits the amount of investments that can be made per investment class thus limiting investment risk.

Regulatory oversight

The Financial Services Regulatory Authority (FSRA) regulates the unit trust industry and all unit trusts that are marketed in eSwatini are registered with the FSRA.

Professional expertise

CIS investments are managed by experienced and skilled professionals, who, with the help of investment research teams, analyze and selects suitable investments to achieve the scheme objective.

Low entry costs

When building your portfolio the costs associated with buying units in a unit trust fund are lower than buying different individual securities. This is due to economies of scale where costs of accessing extensive research, as well as administrative, operating and trading expenses are spread among a large number of unit trust investor s.