Unit Trust: Role Of Consultant. MUST READ!!!!

Role of Consultant MUST READ!!!

· To do active monitoring by

1) To practice DCA/Average down the cost per unit
2) Understand the market cycle such as the 1:3:5 RULES.
3) Giving information about the market and any relevant news to the investors
4) via email/text messages/call
5) Practice the buying and selling strategy. 1st strategy is advice clients to buy more units when the price is low. 2nd strategy is to sell when the price is high. This how you get the capital gains.

· Switching

The consultant will advice when is the good time or necessary time to do switching to maximize the return and minimize the risks. The switching facility is free and can be use 4 times per calendar year. For example, Mr. C invested in small cap fund (fund 1) in January 2008.

Later he found out that the fund is highly to aggressive and he does not want to lose his principle investment. He asked his consultant to switch his investment to less aggressive fund in March 2008.

In fund 2, he making more money and suddenly the market is down. So he switches again to money market fund which is more stable and does not have major effect if the market is down.

After the market goes up again, he switch back to fund 2. It means Mr. C have used his 3 switching facilities and only 1 left before year 2008 ends.

· Redemption

The consultant will make sure once you have reached the target of returns, they will lock-in the profit, whether you want to reinvest it or taste the profit.

The consultant make sure when you have reached your return target, let’s say, 20%, they will advise you whether you redeem it and reinvest it or maybe just let the money grows. It’s up to you to redeem or just let it grows in 3-5 years time.

The duration for unit trust is middle to long term, which means 3-5 years of investment. The process of redemption is 3-7 working days.

The profit will go directly to you, either bank-in in your account or, cheque to your name.