In any retirement investment, capital preservation is Key and with the huge selection Unit Trusts Investments available today, investing in unit trusts as part of your retirement portfolio is something to consider.
Collective investments as Unit trust funds have also become know have varying risk attached to them which opens them up to a wider spectrum of investor. We must not confuse Unit trusts as collective investments with any of the other investment vehicles that fall under the collective investments banner like property syndications or participation bonds. Unit trusts are very well regulated under the Collective investments act and investors enjoy protection under the act.
With all retirement investments we are seeking to preserve the capital and produce a return that is in line or above inflation with the least associated risk. Unit trusts are funds made up of stocks, shares and other investment vehicles available on the market including EFT’s. The fund will clearly outline it’s it’s associated risk and your retirement goals, your age, the number of years to retirement and your personal risk appetite need to be taken into account when considering Unit Trust Investments as part of your retirement investment portfolio.
Annuity investments are your first priority when catering for your retirement and Unit trusts are, in our opinion the next best thing for people wishing to shore up their retirement income, particularly if you find yourself in a position where your retirement savings are not sufficient to afford you the retirement you had planned.
Unit trust investments do not guarantee any return or income like Annuity investments and are therefore a riskier investment. Should the market crash, the likelihood is that your Unit Trusts investments will see your capital being eroded. So what do we look for in a unit trusts fund when considering them as part of your retirement portfolio. The most important thing to consider is it’s performance over the long term, at least 5 year returns, longer if available.
The less risky and better performing Unit trusts are what you should be looking for and you would be well advised to consult a retirement planner or financial adviser to help you navigate the 1000+ Unit trust investment opportunities.