Posts Tagged ‘unit trust’

Why buy from a consultant?

July 29, 2008

I ran into an old friend the other day. He told me he had invested some of  his EPF money into a unit trust fund. He had purchased the fund at the counter.  He told me he didn’t know the movement of his investment.

He then asked me why it is a good idea to buy through a consultant as opposed to purchasing it at the counter.

Whether an investor purchase a unit trust fund at a  counter or from a consultant he/she will still have to pay the same service charge. For EPF investment the service charge is 3% of the investment amount.

Advantages of buying from a consultant:

–  He/she will do the running around. This means you can rely on your consultant to do the paper work and submit them for you. This can save you a lot of  hassles.

–  He/ she can also help you with future transactions like switching, repurchasing or redemption.

–  He/she can update you on your investment progress and new funds.

–  He/she is officially your contact person, should you require any information pertaining to unit trust investment.

You can  buy at the counter but the disadvantage is, you will not receive after sales service despite paying for the service charge.