Spreading The Risks For Small Investors (Final)
Part 3 (final part of the article)...
Hope the information sharing has shed some lights to the new investors...
Q: Can a potential investor inspect the trust deed before investing?
A: Yes. The trust deed can be opened for inspection at the premise of the management company. Some campanies even allow the investor to purchase the deed.
Q: What rights do Unit Holders have?
A: Unitholders do not have any say in investment decisions. However, they can request the management company to provide an up-to-date portfolios and if they are not happy with the investments, they can always withdraw all their investments at any one time as the management companyis bound by the trust deed and by law to repurchase the units.
Q: How does a Unit Trust derives its income?
A: A Unit Trust derives its income from 3 main sources. Firstly, the income from the dividends of the stocks and shares invested. Secondly, it receives interests from investments with the financial instituitions and thirdly, from the sale of investment. Together they make up the total income for the year.
Q: How often do investors receive their dividends?
A: Each fund has its own financial year and dividends are only declared once. Upon the declaration of dividends, the investor will receive the warrant within 2 months's time. The amount of distributions depends on the fund managers and the objective of the fund. If the objective is income, then most of the income received would be distributed.
A: Yes. The trust deed can be opened for inspection at the premise of the management company. Some campanies even allow the investor to purchase the deed.
Q: What rights do Unit Holders have?
A: Unitholders do not have any say in investment decisions. However, they can request the management company to provide an up-to-date portfolios and if they are not happy with the investments, they can always withdraw all their investments at any one time as the management companyis bound by the trust deed and by law to repurchase the units.
Q: How does a Unit Trust derives its income?
A: A Unit Trust derives its income from 3 main sources. Firstly, the income from the dividends of the stocks and shares invested. Secondly, it receives interests from investments with the financial instituitions and thirdly, from the sale of investment. Together they make up the total income for the year.
Q: How often do investors receive their dividends?
A: Each fund has its own financial year and dividends are only declared once. Upon the declaration of dividends, the investor will receive the warrant within 2 months's time. The amount of distributions depends on the fund managers and the objective of the fund. If the objective is income, then most of the income received would be distributed.
posted by GAM Ida Azerin at 3:49 PM
