A lot of people ask me to explain the difference between mutual funds (MFs) and unit investment trust funds (UITFs). And so, to get this questions answered simply and briefly, I've decided to make an article.
Remember an article I made about earning millions through investing?
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| Investing in MFs & UITFs means your money works for you. |
Fundamentally speaking, my friend, MFs and UITFs are actually similar in four ways. You can invest in even both of them. The most important thing is that you start now and do not commit money mistakes:
- Both investment vehicles are pooled investments.
Basically, your money is collected along with the money of thousands of investors. The collected money is then invested in a diversified portfolio consisting of bonds, stocks and others.
- Both MFs and UITFs are managed by "professionals".
If you decide to invest in either or in both, you don't have to analyze the market trend full-time. You'll be essentially paying someone else to do it for you.
- Both MFs and UITFs are risky, though.
The past performance of the funds does not guarantee future returns.
- Then again, both have been proven to yield greater returns compared to your savings accounts and time deposits.
The past performance of the funds does not guarantee future returns.
- Then again, both have been proven to yield greater returns compared to your savings accounts and time deposits.
I'm talking about a range of 4% to 20% annually, as compared to your cash deposits yielding .75% interest annually.
Now that we've dealt with the similarities, let's focus on the main topic of this article.
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| Let's get ready to invest! |
Now that we've dealt with the similarities, let's focus on the main topic of this article.
10 Differences between Mutual Funds (MFs) and Unit Investment Trust Funds (UITFs)
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| A table listing the differences between Mutual Funds (MFs) and Unit Investment Trust Funds (UITFs)
I hope these differences seem a little bit clearer to you now, guys.
Do you have any questions? Feel free to post them here and I'll answer you up to the best of my ability!
Best tip? Start investing NOW and earn MILLIONS in the long run! :)
Fired up to manage your money yet? Contact your trusted financial advisor. You can also get FREE financial consultation from me by filling out the form here to help you get started.
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Live wisely,
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