Choosing the best vehicle for your investment is crucial and requires thorough and depth background checking. If you fail to analyze your mode of investment, it might lead you to the loss of profit or worse your capital.
However, for those who are beginners in the industry, what you can do is to follow the guidelines that I provide below:
1. Do a quick background check of the potential investment portfolios and also who are the fund managers of that portfolios.
2. Once you did the background check, ask for a personal presentation on the investment portfolio from the financial advisor of that particular investment. The financial advisor or consultant are willing to assist you as they also earn commission out of the investment you made.
3. Once you made your investment, request for a monthly statement to be sent to your address.
4. In the monthly statement, do a detail check on the buying price, date of purchase, units of investment you are currently holding and type of investment.
Compare all the information you obtained from the monthly statement with today newspaper (Tuesday - Saturday) and make your own analysis on the performance of your investment.
5. Take note that unit trust or mutual fund investment normally takes medium to long term to make profits, usually between 3 to 5 years and can range to 10 years for slow and moderate investment portfolios.
Investing in unit trust fund or mutual fund is the best method of multiplying your money so far. The risk is moderate and in certain condition, investors can make profit as if he/she has invested in the higher risk of investment portfolio.
The method is simple in unit trust or mutual fund investment - every investor has actually diversified his investment risk(s) into many investment vehicles that the fund managers have planned prior to the investment. It's like you're putting all of your golden eggs into many baskets instead of only one basket.
