Before investing in any unit trust, investors are advised to evaluate and determine their own individual financial needs and goals. Once these financial goals are quantified, investors can then construct a practical investment portfolio to achieve these goals. The choice of fund would then depend on the following key aspects of the investment portfolio:
1) Investment objectives/Risk-return targets
What annualised returns do I need to achieve my financial goals? Can I tolerate the risk associated with these return targets?
2) Time horizon
What is my investment time horizon? Can I leave my money there without drawing from it over the next few years? Can I afford to invest or maintain my investment portfolio?
3) Asset allocation
What is the optimal asset mix for my investment portfolio to achieve my investment objectives?
Saturday, November 15, 2008
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