What is Unit Trust?
A unit trust is a form of collective investment constituted under a trust deed. A unit trust pools investors’ money into a single fund, which is managed by a fund manager.
Top Unit Trust In South Africa
Below are some of the Top Unit Trusts.
1. GinsGlobal US Equity Index Fund – 22.1%
The GinsGlobal US Equity Index Fund capitalizes on the US stock market. As a result, the results are usually parallel to those of the MSCI US Index. This portfolio is ideal for individuals and businesses who want exposure to the equity markets in the United States of America.
2. Old Mutual Global Equity Fund – 21.9%
The Old Mutual Global Equity Fund has a recommended minimum investment period of five years, meaning that it is a long-term investment. After pooling funds, it buys shares from developed countries around the world.
3. SEI GIF Global Select Equity Fund – 20.7%
The SEI GIF Global Select Equity Fund makes investments in US dollars. It is an approved distribution fund in South Africa under section 65 of the Collective Investment Schemes Control Act 2002.
4. SFL Stanlib High Alpha Global Equity Fund – 20.7%
The High Alpha Global Equity Fund by SFL Stanlib is one of the most-reliable portfolios in South Africa and beyond. It is an open-fund type of portfolio that invests in global equities.
5. Stout Stanlib Global Equity Fund – 19.5%
The Stout Stanlib Global Equity Fund has made annualized returns of 19.5% over the last 10 years. This portfolio is dedicated to providing investors with capital growth. It invests in diverse securities listed on the global stock markets.
Is unit trust a good investment?
Liquidity – you can usually sell your shares at any time, or at specific times in the year, making it relatively simple to access your money if you need it. Tax – although you will pay income tax on the dividends, this is charged at a lower rate than on other forms of income.
How do I choose a fund for a unit trust?
To choose the unit trust funds that suit their needs, investors have to be clear about their financial goals. For example, is the investor looking to achieve capital growth, regular income, or capital preservation? Once investors have established their goals, they need to consider their investment time frame.
How to buy unit trusts in South Africa?
You can invest in a unit trust fund through financial services providers such as a broker; an Investment Management Company or in some cases through your bank. A unit trust fund is a pooled resource, which means that it allows a group of investors to combine their cash and invest it.