The problem with unit trusts

By G. Sharmila

In this three-part series of articles, KiniBiz investigates the world of unit trusts. In the first article, we look at what exactly are unit trusts and how they operate to get to the heart of the problem — their high costs. We then compare the domestic unit trust industry fees with that of Singapore, Thailand and developed countries like the United States. We also look at the liberalisation of the industry and what it means for investors. Finally we look at options that would help retail investors get the best bang out of their buck if they do not wish to consider unit trusts.