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Why invest in a unit trust?

There are many options available to investors looking for financial gains, however, not every option is accessible, and many options have significant risks.

Unit trusts offer investors many benefits such as:

  • Diversification: Unit trusts invest in a broad range of assets, rather than a portfolio of one or two investments or shares. This means the investor gains exposure to a wide range of asset types which enables them to spread their risk and avoid losing capital while still earning a return.
  • Professional fund management: Unit trusts are managed by professional investment managers on your behalf. Each unit trust fund has a legal mandate outlining the defined objective and investment parameters of the fund. Truffle’s portfolio managers have the required skill, knowledge, and expertise to invest in pursuit of the fund objective while also staying within the fund’s mandate.
  • Affordability and access: Investing in a unit trust means purchasing units in a large fund with many other investors. This gives you access to investment opportunities that would be impossible to access as an individual investor. Additionally, the minimum investment amount can be as low as R500 per month with each fund indicating a minimum requirement.
  • Investment choice: Truffle Asset Management has various unit trust fund options to choose from. These have various objectives and are exposed to different levels of risk.
  • Regulation and security: Unit trust funds are part of a well-regulated industry and fall under the regulation of the Collective Investment Schemes Act (CISCA) and the Financial Services Board (FSB). All unit trusts in South Africa must be registered with the FSB. Trustees are appointed to each unit trust fund and unit-holders money is secure in the trust vehicle.

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