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I am very sure that you know that you can increase your wealth from investment.

When you hear the word investment, are you thinking about stocks and shares? People get skeptical about shares thinking that one will definitely lose money from shares because of the risk level. However, if someone tells you that there are investments that have little or no risk; do you think its bond?

Personally, I am not a fan of bonds or fixed income securities.

Investing in bonds is a waste of time and sometimes, money. However, the best investment that I truly love because of the transparency and returns are unit trust. Another term for unit trust is mutual funds.

A unit trust is a legal trust that holds investments and other assets for the benefit of the unit holder that share similar investment objective.

The investment portfolio is managed by a professional fund management firm that strives to meet investment goals of the unit holders.

The unit trust is divided into equal portions called units.

Investors buy and sell these units from the manager of the unit trust. A unit trust is constituted by a trust deed.

There are advantages and disadvantages of investing in unit trust.

In fact in any kind of investment, there are advantages and disadvantages. Unit trust serves investors who do not have much financial knowledge on investment. As unit trust is handled by a professional fund management, people who spend time and money to study about investment, I am sure your money is in the safe hands.

Advantages for unit trust are affordability, professional investment expertise, diversification, liquidity, security, convenience and compatibility.

Where else disadvantages for unit trust are risk (all investments have risk), level of attention and high cost base.

There are other factors to consider too when investing in unit trust but these are some of the features that can be considered the next time you want to invest.

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Ihab Salloum