Personal Finance with Warren Ingram Personal finance: Are unit trusts still relevant?
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Jul 1, 2025 Warren Ingram, Co-Founder of Galileo Capital and a certified financial planner, shares his insights on the relevance of unit trusts in modern investing. He discusses their long-standing appeal for diversification and expert management, while also addressing drawbacks like high fees. Using a pizza analogy, he simplifies unit trusts' operation and compares them to exchange-traded funds, weighing their historical performance. Ingram emphasizes the importance of long-term investing strategies amidst economic volatility and geopolitical tensions, urging listeners to stay informed.
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Unit Trusts Provide Collective Safety
- Unit trusts pool money from many investors to create large diversified portfolios managed by professionals.
- Assets in the unit trust belong to the investors, providing safety and independent custodianship.
Unit Trusts Are Like Shared Pizza
- Unit trusts offer investors a slice of a diversified portfolio just like sharing a large pizza amongst friends.
- This allows small investors access to investments they couldn't afford alone, with flexibility to enter or exit anytime.
Clear Role Separation Ensures Transparency
- Unit trusts separate roles between fund manager, administration company, and custodian to ensure transparency and protection.
- This structure keeps investor ownership clear and secures assets even if fund managers fail.