Tips on how to choose unit trust funds

For those who are willing to park their money in unit trust funds, here a simple helpful article by Mr Ooi Kok Hwa.

UNIT trust funds offer an attractive alternative to retail investors, especially those looking for the benefit of diversification with a small pool of capital while enjoying the possibility of earning higher returns compared with conventional savings.

However, a lot of people have the misconception that the diversification nature of these funds means that the risk of investing in unit trust is low and they can just close their eyes and simply pick any of the funds that come along.

This misconception has led to many paying high prices in learning that as in any type of investments, investing in unit trust funds requires some basic understanding and research before we commit our hard earned money to it.

In general, we can classify the unit trust funds in the market into two major categories: income funds and growth funds. By Mr Ooi Kok Hwa in StarBiz, see full writeup here, http://biz.thestar.com.my/news/story.asp?file=/2009/12/16/business/5308178&sec=business