What is a trust fund unit trust? In fact, a trust fund is a company (usually a bank or financial institution, such as public mutual aid) that collects funds from public investors and then invests them by professional fund managers. The methods and strategies of fund investment depend on different funds. The advantage is that the chance of return is higher than the interest of bank deposits or regular interest, but the risk is far lower than that of investing in stocks. Each fund has its own prospectus to explain the investment rules and strategies of the fund. Advantages of investment trust fund unit trust: professional fund managers help us invest. Many people don't have the knowledge of investing in stocks, and they don't have time to keep an eye on the stock market. So let professionals help us, and our investment can earn a lower risk return. Diversified investment. Usually, a fund will not only invest in one company's stock, but also invest in many countries, fields or companies. In this way, the risks are dispersed. Less investment. Usually, the minimum investment of an investment trust fund is RM 500 or RM 65438 +0000. You can sell it at any time. If we want to sell our fund, the fund company must buy it back from us. When we want to sell industries or stocks, we must have buyers. Invest in some areas that ordinary investors can't invest. For example, it is difficult for an ordinary investor to invest in bonds (the minimum investment is RM 654.38+00,000) or overseas stock markets. Then you can invest in related fields through bond funds and overseas funds. Disadvantages of investment trust fund unit trust: because of dispersion, if a certain field has good growth, the fund may not have good growth, and the return will be reduced because of dispersion. Fund managers must invest according to the investment strategy in the future, and cannot use their unique experience flexibly. In addition, the high service fee is also one of the disadvantages of investment trust funds. The service fee for equity funds and balanced funds is 5.25%. A friend of mine bought a loss-making fund, such as -PCSF, a public offering of China Select Fund, which doesn't pay dividends and its price has been falling. Therefore, it is best to do research before buying funds to avoid buying these bad funds. Are you going to invest in a trust fund?