A unit trust is a basket of a selection of listed securities – shares, bonds, property, cash or other asset classes – chosen by professional fund managers. The manager buys these securities on behalf of the fund, which is then split into equal units which are sold to investors. They enable investors to own many listed securities, as their money is pooled with other investors to achieve economies of scale.
Our solutionsUnit trusts investments have the following advantages.
- Affordable and Accessible: Because investors buy into a pool of funds, they can hold shares without having to lay out big amounts of capital. For as little as R500 a month, you can invest in Old Mutual Unit Trusts.
- Diverse: Because a unit trust is a basket of diverse shares, this reduces the risk of investment risk.
- Liquid: Investors can buy and sell shares on demand.
- Safe: The fund is set up under a trust deed and the investor is a beneficiary under the trust company.
Why invest in Unit trustUnit trusts use the combined money of investors to invest in global stock markets and economies. This money is managed by investment professionals, called portfolio managers, who buy shares and other asset classes on behalf of their clients, according to the unit trusts mandate. Whether you’re investing via our secure site or through your financial adviser, it is important that you understand what you are buying
- Unit trusts offer you the flexibility to tailor a portfolio that suits your specific investment needs and time horizon.
- You can buy them direct or through a financial planner.
- You can access the stock exchange without needing knowledge or experience of investing in equities.
- The ability to diversify (spread) your investment across markets, sectors and economies greatly reduce your investment risk.
- Money invested in unit trusts is easily accessible, especially in times of emergency.
- Unit trusts are tax-efficient, providing tax exemptions on interest income and capital gains tax.
- Unit trusts offer exciting capital growth opportunities over the medium to long-term.
- Online transactional capability: you can buy, sell and switch units in your portfolio online.