Types Of Unit Trust Funds & Risk

Example of risk and return.

There are many different types of unit trusts but, in general, they can be categorized as follows:
a) Bond and money market funds are funds that invest in fixed income securities (which are long-term debt) and in short-term debt respectively.
b) Balanced funds a mix of equity and bonds.
c) Islamic / Shariah  funds
d) Equity funds are basically funds which invest is stock which are listed, either locally or offshore.

IS IT RISKY?
 "There is no free lunch in this world. The lower the risk the lower the potential return. The higher the risk the higher the potential return."

When it comes to investment there is always element of risk. This is only a summary Loonie did it.

a) Equity Funds (Local) - Market Risk, Stock Risk, and Liquidity Risk
b) Equity Funds (Local & Overseas) - Market risk, Stock Risk, Currency Risk and Country Risk
c) Bond Funds - Interest Rate Risk, Credit Risk and Liquidity Risk.
d) Islamic / Shariah Funds - Risk of Non-compliance with Shariah requirements.