Why should I invest in a unit trust or mutual fund?
For retail investors, mutual funds can be a smart and cost-effective way to invest as many funds have affordable minimum investment requirements. As a mutual fund often invests across sectors, industries and markets, buying shares in one is also an easy way to diversify your investment portfolio and spread risk.
There is a broad range of mutual funds available and each must be accompanied by a prospectus and product highlights sheet when it is offered to you. Read these documents carefully to understand the fund’s investment objective, strategy, risks, fees, historical performance and other important information. You can select a combination of funds to cater to your specific investment objectives and risk tolerance.
As part of retirement planning, you can invest in funds or unit trusts via the Supplementary Retirement Scheme (SRS) or the Central Provident Fund Investment Scheme (CPFIS). To learn more, go to CPF & SRS.
How do I know which fund is right for me?
Each fund has its own investment objective and investment approach or strategy. You need to make your choice based on your own investment objectives and risk tolerance.
Some investors are comfortable with higher investment risk because they want to aim for higher returns in the long term. Others may prefer more stable investments with lower returns.
For more on how to choose funds and build a diversified portfolio, go to How to pick funds.
How long should I hold a fund for?
Markets move in cycles. Over short periods, there can be a lot of ups and downs. But the longer you stay invested, the greater the probability that your investment will generate a positive return. This strategy is called dollar-cost averaging (DCA). To find out more, go to Investing in mutual funds.
We publish monthly factsheets on Fidelity Funds registered in Singapore. Read these materials to monitor how your fund is performing.
Depending on your time horizon, you may want to modify the risk-return profile of your investments. For example, when you are near retirement, you may want to hold more of your money in low-risk options. To learn more, go to Managing your investments.
Who manages the funds?
The whole process of managing a fund requires the expertise of a high-calibre team.
The fund manager or portfolio manager decides on the underlying investments for a fund and is responsible for the fund's investment strategy. But he/she cannot operate alone and is usually helped by a team of experienced investment professionals – investment analysts, traders, fund administrators and support teams.