Unit trust investment is safe, you will not easily lose money because highly trained professionals are employed to manage your fund.
This concept is mostly promoted by sale agents. Victims of this concept are normally those who have some extra cash but do not want to deposit into bank fixed deposit, because they have basic understanding about the value of investment and unfavorable factor caused by inflation. But they are not willing to pay the price to learn themselves.
So when they heard unit trust promoters selling this idea, they fall victimized in the sense of dumping all their cash in the unit trust fund without looking back again. Only when they want their money back, they found out their investment are actually losing.
The truth is, even though highly trained professionals are employed to manage our funds, it does not always guarantee that our investment will be profiting. There are economic cycles in all type of investment, whether in property, businesses, commodities, agricultural products, regional investment, single country or multiple countries etc. All investors must learn about their economic cycle. They both have their high’s and low’s seasons. Whoever invests money during high season and redeem the investment during low season, will lose his investment.
Highly trained professionals are employed to protect your investment only in the sense of making sure profit will be brought in during good season, loses will be minimized during bad season. They also have the obligation to make sure your money will always stay invested, regardless good season or bad season. This is part of their spelled out job duty. They can never withdraw your money totally from the market when bad season comes. Therefore, the only person who can withdraw is we, the investors.
This is the reason we as investors have to play our part even after we have entrusted our fund with unit trust fund houses. We have to keep watch over the performance of our investment and do proper action when necessary.