Unit Trusts

Guide: Fund Investing

Disadvantages of Unit Trusts

  • Unit Trusts are not allowed to borrow, therefore reducing potential returns.
  • Bid/Ask prices exist - with the price that you can buy a unit for usually higher than the price you can sell it for - making investment less liquid.
  • Not good for people who want to invest for a short period.
  • Not good for people who want to avoid risks at all costs.

Top of Page