MoneySENSE 4: Personal Investing

According to the article ‘Unit trusts overtake shares as CPF investment choice’ (The Straits Times, 30 Jan 2008), Singaporeans are increasingly turning away from shares, and putting their Central Provident Fund (CPF) cash in unit trusts instead. The article suggests that some Singaporeans turn to unit trusts because stock market volatility generates a dislike for shares. Moreover, the shift to unit trusts can be traced to more people enlisting the help of financial advisors. These advisors tend to advise their clients to invest unit trusts as they may offer more diversification for investors’ portfolio.

Given the advantages of Unit Trusts, why do you think some people still prefer to invest in shares? Also, what are some of the key areas you should keep a look out for before making an investment decision?
 

Suggested Readings:
- ‘Unit trusts overtake shares as CPF investment choice’. The Straits Times. 30 Jan 2008. <http://www.straitstimes.com/Free/Story/STIStory_201594.html>.
- ‘Introduction to Personal Investing’. MoneySENSE. July 2003. <http://www.moneysense.gov.sg/resource/publications/guides_publications/IMAS%20Personal%20Investing.pdf>.