Who are managing these unit trust funds?

Unit fund is managed by a group of professional managers (known as the unit trust company) who will invest the pooled money in a portfolio of securities such as shares, bonds and money market instruments or other authorised securities to achieve the objectives of the fund. Because of the large sums collected, the fund manager is able to diversify among various investments in such range and diversity that the risks of investing are minimised.

Why I highlighted the word Professional?
Still remember the 1997 financial crisis? The reason why it affected so many people is because at that time, almost everyone, or anyone buy shares! You can see people selling vegetables, and talk about how much he made in the stock market. And also because of these uninformed people buying into the stocks, a counter that worth only RM1.00 can be sold at RM5.00! Isn't that hilarious?!..

Well, I'm not saying that these professionals will surely make profit when investing in shares! In fact, if these people are really so good, they are already billionaire themselves, and wouldn't give a damn investing for people for a salary! Look at Warren Buffett!.. What I want to stress here is, at lease these people know a thing or two more than the general people investing in share market!...At lease they can differentiate between a stock that is "fried" up by speculations, or really have the fundamental to be priced at that level!

So if you know nuts about stock market, don't dive into it! Choose unit trust instead!

If you think you know a lot about stock market, and is already investing in stock market, do compare your profit/loss to the unit trust fund and benchmark! Cause most of the time people will find that they do no better than unit trust fund!

The profit is even much less if you count in the amount of effort spent on "researching" before you buy a certain counter, and also the minimum brokerage fee of RM40.

So at the end of the day, is it worth it to buy stocks by yourself?