What is unit trust in Malaysia?
In Malaysia, unit trusts are a collective investment scheme that allows investors with a common goal to pool their funds together for investment purposes.Typically, unit trusts are managed by a professional fund manager in a portfolio of securities which will correspond to the fund’s objectives and investment strategy.
How does unit trust work?
Most investors have more options of what they want to invest in but lack enough money to invest in all of them. When you are working with a limited budget, it can be hard to diversify your portfolio with several different assets and stocks options. This is where unit trust comes into play. By pooling your money together with like-minded investors, every investor gets a chance to diversify their portfolio with assets and stocks options that might be unreachable otherwise.
Can I withdraw money from unit trust?
The answer to this question depends on the unit trust you invested your money in. With most unit trust schemes, you can sell/redeem your units once your investment is completed. However, you are not allowed to sell/redeem any funds during the transaction or when the investment is in its processing cycle.