NCB Unit Trust Basic
This type of fund pools money from many investors and is managed professionally.
what is a unit trust?
Keeping money here typically earns low interest but high liquidity.
What is a bank savings account?
This benefit describes money growing faster than it would in a low-interest account
What is higher growth?
The teacher contributes this fixed amount each month to her investment.
What is $5,000?
Putting money into different assets to reduce risk is called this
What is diversification?
Unit trusts allow ordinary people access to these, which are usually for large investors.
What are professionally managed portfolios or institutional-quality investments?
This is the person or team who makes investment decisions for the pooled fund.
Who are professional managers?
The practice of investing regularly over time to reduce market timing risk.
What is dollar-cost averaging?
Pooling money reduces this cost per investor through economies of scale
What is cost? (or what are fees?)
The collective investments are diversified into many of these, such as government bonds and shares.
What are asset classes?
The extra money earned on top of the original amount invested.
What is return on investment?
Using investment returns for future expenses is an example of this financial goal.
What is saving for education / paying for university?