There are 5 important things you need to know when deciding to invest in unit trusts ....
- Invest in what you know - It doesn't matter how good an investment sounds , learn about what you are investing in and understand what it is all about.
- Understand Investment Risks and Returns - If an investment offers higher returns, chances are it is riskier then others. Don't let it stop you but just understand the risk you are taking before making your decision. Only invest in a unit trust with a level of risk you are comfortable with
- Diversify and invest in different types of Investments. Portfolio diversification is a simple investment strategy and the concept can be summarized as : not putting all your eggs in one basket.
- Concentrate on Long Term Results - Try to focus on what is going to happen over the next 15 to 20 years and invest accordingly. Never be afraid of dips in the financial markets but continue to be consistent and persistent in making regular unit trusts investments. Do not allow the rest of the world to influence you into short circuiting your investment plan
- Be responsible for your investment - Make the success of your investments personal by taking responsibility for your decisions. You have to captain your own financial ship according to your planned destination with the help of your consultants.