Unit Trust Advisor

COVID-19 pandemic has taught us an important financial lesson. It has become crystal clear now that whether you are earning by monthly salary or through your professional income, it should be one of the sources of income and not the only source of income. To open up another channel of income, savings alone is not sufficient but persistent and intelligent investment is the key to taste the fruit of success. Investment in Unit Trust Funds and Shares are two important classes of investments that has got the potential to make you rich. I have seen many persons complaining that they are not getting good returns from Unit Trust Funds. The correct choice of funds, timing of entry and exit from the Unit Trust, Systematic investments, and periodical review are the four key factors to get good returns from Unit Trusts.  If you want to learn more details about Unit Trusts in a highly simplified manner, just call us and book a consultation which will make you very confident while investing in Unit

You can invest at any time. However, it is very difficult for you to predict market conditions i.e. to buy units at the lowest price and sell them at the highest price. Our knowledge and insight into the workings of the financial markets enable us to provide you with expertise which takes into account market fluctuations. One of the most common mistakes made by investors is to switch in and out of unit trusts too quickly. Switching between funds too quickly can lead to an increase in the cost of transactions, which can reduce the return on your investment.   It is important to note that fund managers do not manage funds on a short-term basis. Most portfolios are managed to generate consistently good returns over a period of six months and above. A good strategy is to buy unit trusts on a regular basis, topping up regularly. ඒකක භාරවල ආයෝජනය කිරීමට හොඳම කාලය කවදාද ? ඔබට ඕනෑම වේලාවක ආයෝජනය කළ හැකිය . කෙසේ වෙතත් , වෙළඳපල තත්වයන් (predict market conditions) පුරෝකථනය

  One of the most fundamental concepts in finance is that money has a “time value.” That is to say, money in hand today is worth more than money that is likely to be received in the future. For example, if you are offered the choice between having Rs. 10,000 today and having Rs. 10,000 at a future date, you would prefer to have Rs. 10,000 now. By accepting Rs. 10,000 early, you can put the money in bank and earn some interest. Thus, the time gap allowed helps us to make money. This incremental gain is time value of money. The Time Value of Money concept is grouped in two areas: Future Value and Present Value. Future Value is the method of discovering what an investment today will grow to in the future. Present Value on the other hand is the process of determining what a cash flow to be received in the future is worth in today's value.

  Rupee cost averaging is an approach in which you invest a fixed amount of money at regular intervals. This in turn ensures that you buy more shares of an investment when prices are low and less when they are high. By investing on a fixed schedule, you avoid the complex or even impossible duty of trying to figure out the exact best time to invest. The rupee cost averaging effect - averages out the costs of your units and hence lessens the results of short-term market fluctuation on your investments. Getting started on a rupee cost averaging strategy Decide on the amount you can invest on a regular and long-term basis Select an investment you want to hold for the long-term Invest at regular intervals (weekly, monthly or quarterly)

  Compounding refers to the reinvestment of earnings at the same rate of return to constantly grow the principal amount, year after year. It is a technique of making your money work harder for you and is perhaps the most powerful tool that an average investor can use to plan for many of life’s financial goals, including retirement. You can make compounding work for you by doing a few simple things: Start early. The younger you start, the more time compounding has to work in your favor and the wealthier you can become. The next best thing to starting early is starting now. Make regular investments. Don’t be haphazard. Remain disciplined, and make saving for retirement a priority. Do whatever it takes to maximize your contributions. Be patient. Do not touch the money. Compounding only works if you allow your investment to grow. The results will seem slow at first, but continue on. Persevere! Most of the magic of compounding returns comes at the very end. Compounding creates a snowball of

  INFLATION Inflation refers to a continuous rise in the general price level, which shrinks the value of money or purchasing power over a certain length of time. It is calculated in terms of percent change in the value of price index consisting of a range of goods or services. An inflation rate of 8% means that the general level of prices of goods and services has increased by 8% over the previous period. In other words, purchasing the same amount of goods and services will cost you 8% more than what it would have cost you in the previous period. Thus, Inflation can also be explained as a decline in the real value of money - a loss of purchasing power in the means of exchange, which is also the monetary unit of account.

One of the best ways for beginners to get started investing in the stock market is to put money in a unit trust account and use this approach to learn more. Because unit trust funds can provide you diversification, managing risk and professional service. Unit Trust fund investments are becoming very popular with individual investors because of the benefits they provide. Among the many advantages, the most important factors that drive investors to Unit trust funds are that Investors can ·          Start with any amount (Minimum LKR 1,000) ·          Diversify across multiple stocks and other instruments. ·          Start with any amount (Minimum LKR 1,000) ·          Liquidity ·          Diversification ·          Expert Management ·          Less cost for bulk transactions ·          Invest in smaller denominations ·          Quick and hassle-free process ·          Suits your financial goals ·          Systematic or one-time investment ·          Safety Now let's Understand what i

R isk is defined as the uncertainty or deviation in the return expected from an asset class. This risk could be measured in terms of standard deviation of an asset class. Risk can be classified as below: Systematic Risk An open-ended fund is a fund that is available for subscription and can be redeemed on a continuous basis. It is available for subscription throughout the year and investors can buy and sell units at NAV related prices. These funds do not have a fixed maturity date. The key feature of an open-ended fund is liquidity. Systematic risk is defined as a risk that takes place in all the risky assets because of macro-economic factors like earthquakes, floods, war, etc. However, it cannot be eliminated through diversification. Unsystematic Risk Unsystematic risk is defined as a risk that is unique to a particular asset class and can be eliminated or reduced by diversifying a portfolio. A security's return is calculated by its holding-period return: the change in price plus

Let's learn about Unit Trust Funds.  Unit Trust funds can be a smart place to start investing. They're easy to access and don't require you to read any balance sheets or even know what a balance sheet is. They're also less likely to leave you high and dry than an individual company, which is more likely to go out of business. Unit Trust funds you to turn the selection of individual stocks, bonds, and other investments over to professionals.  This makes mutual funds a great option for hands-off investors