Unit Trusts - vital in any balanced investment portfolio
Unit Trusts should be part of any balanced investment portfolio. While Liberty Investments itself does not offer unit trusts, Stanlib is part of the Liberty Group and has a long unit trust history and a wide range of funds to suit any investment profile. For more details, please visit the Stanlib Website. Back to Liberty Life's range of investment products.
What is a Unit Trust and how do they work?
If you do not have the expertise, time or money to invest in the stock market but still want exposure to shares, you should consider putting part of your portfolio into unit trusts. A unit trust is basically a large group of people who all invest -- sometimes small amounts -- in a cash pool that is used to buy specified stocks that otherwise would be too expensive for each individual. Each member of the pool purchases a share in the fund and is allocated units according to the amount they invest and the price at which the units are trading. Because your investments in the fund are spread over a number of different shares, the overall risk involved in trading on the JSE is reduced. Each fund is managed by a fund manager and you may be required to make monthly payments that are used to purchase additional shares. Your units can be traded like other stock market-related instruments and the price is determined by supply and demand. Prices are published live on the Internet or daily in the press. You can sell your units at any time and can realise the cash within a day or two. Do not be in a hurry. Unit Trusts are unlikely to show a profit overnight. Be prepared to invest for three to five years. Consult an expert.
To purchase unit trusts or to find out more please visit the Stanlib website