4. Dividend is the only return.
Not true. Investors can measure the performance of their investments in unit trusts by various means. This often includes the calculation of capital gains (the difference between the buying and selling price) or the amount of distributions received from a fund. However, the most effective method in calculating performance is by including both. This performance measure is called total returns as it includes all sources of income i.e. dividends and capital gains (or losses).
|
| |
5. Unit trusts is a savings account and risk-free.
Not true. Investing in a unit trust is not the same as putting your money in a savings account. If you invested RM1,000, you must be prepared to accept that you may end up with less money than you put in. This is because your investment will be exposed to risks and you may incur losses due to the inherent risks. All forms of investments do carry some degree of risk and investors must be prepared to accept such risks. |
| |
6. Trust one management company only.
Not true. Not all funds from the same management company give out the same performance or return because these funds may have different investment objectives and therefore will have different risk elements and exposure. Depending on market conditions, funds would perform differently, even if the same management company is managing it.
|
| |
7. Your agent’s words are the whole truth.
Not true. Always verify what your agent tells you. If you are not clear or if you think that it is too good to be true, ask them as many questions as you want. The questions that you think are “stupid” may actually turn out to be spot-on queries for gathering more information. At the same time, do your homework and get as much information as possible to help you make an informed investment decision. Don’t invest until you are satisfied with the information provided to you. Remember, you will ultimately be responsible for your investment decisions and not your agent. |
