85) Unit Trusts Equity funds indirectly invest into Shares

85) Unit Trusts Equity funds indirectly invest into Shares

By investing in Unit Trusts Equity funds, you are indirectly investing into shares of multiple public listed companies. The shares represent ownership of the companies.

When you invest your money, you are participating in the businesses. When you save your money in the bank, the bank is using your money to do their business.

So, which situation you prefer? An Investor or Saver?

Having a business is definitely more risky than saving in the bank.
As the saying goes, Higher Risk, Higher Return.

The share price changes due to the demand and supply of interested investors. If more investors think that the company is going to make more profit, the share price will go higher. The share price drops if more investors think that the company will not make as much profit anymore.

Just like owning a company, there are good and bad business days. As a company owner, you know that on certain days, you will make money, while lose money on other days.  

However, in the longer period, a company will try its best to make money and survive. Otherwise, the company will close down. 

Investing in a company should be for the longer term for it to grow and not give up so fast.

Similarly in Unit Trusts investments, the unit prices will change. Some days go higher, other days go lower. The fund price will be affected by the companies and assets that the fund invested into.

Likewise, invest for longer term for the companies to grow profitable.

Be patient and wait for the fund price to go higher.

It's not WHEN you invest, but HOW LONG you invest.

 


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