Unit trusts (UT) are a popular form of investment that pools money from many different investors, to form a fund which can then be used to invest in stocks, bonds, and other financial instruments, in order to achieve the highest possible return within the objectives of the fund. Investors in a unit trust become shareholders of the trust, and their share of the profits is directly passed to them, rather than reinvesting into the fund.

The fund manager of a unit trust is responsible for overseeing the trust, making decisions on investments, deciding when to sell or buy, and managing the overall operations of the trust. In addition, trustees may be appointed to ensure that the fund is operated in accordance with its goals and objectives. The trustees are responsible for handling any legal or financial disputes between the unit trust and its investors or other third parties.

Unit trusts are attractive to investors because the fund manager will often have the experience and resources to select which investments to make and when, in a way that could yield the highest returns. They are also able to spread the investments across a range of markets, helping to reduce the risk involved and offering more stability than an individual investor could achieve on their own.

The cost of investing in a unit trust is usually lower than dealing directly with a financial advisor as the fund manager will typically choose to invest in a range of vehicles, taking advantage of economies of scale. The pool of money acted on by the fund manager is also substantial, allowing him or her to capitalize on opportunities and to negotiate better deals.

Unit trusts are subject to regulation by the Monetary Authority of Singapore (MAS). The MAS enacts rules and guidelines, which the fund manager must comply with, in order to protect the trust, its investors and its returns.

Overall, a unit trust offers investors a pool of funds which can be invested in a diversified range of financial instruments in order to achieve the highest possible return within the objectives of the fund, which is managed by an experienced fund manager, and is regulated by the countries’ financial regulator. Investors of unit trusts are responsible for ensuring that their objectives are in line with the trust, and their interests are taken care of by their appointed trustees.