Unit Investment Trusts
I found several possitive objects regarding to the Unit Investment Trust and I am desire to descuse about this matter
1. Advantage over bank deposits.
Today annual interest on bank deposits is close to the annual inflation rate and is often even lower. Thus investments into bank deposits make profits only for the bank but not for the investor. In case of investments into capital management your profit from the deposited capital is substantially higher than the bank interest rate and the inflation rate and it can be as high as 50% annual or even more.
2. Advantage over investments into unit fund.
Unit funds have 20%-40% annual interest rate. However, investing money into unit funds you risk the whole amount for in case of the mistake of the managing company you can lose 100% of your investments. With capital management you sign a contract with a professional manager, in this contract the biggest amount you can lose is indicated. It is usually 15%-25% of the invested capital. In a unit fund you risk 100% of your capital.
3 .Advantage of capital management over investments into business.
Investing money into business you have to have good experience and know very well the business where you are investing your money. Even if you understand well the business you still risk 100% of your money. According to sad statistics 90% of companies go bankrupt within the first five years. Investing money into capital management the investor gets the same profit as when investing into a successful business but risking only 15%-25% of the invested capital.