Lets talk about unit trusts. Are they as worthwhile as buying individual stocks? do they have better returns?? what kind of person would buy into unit trusts?? someone who is low on cash?? long or short term investor?? what about the risk tolerance of one who would buy into unit trusts high or low???

If you're 45 or younger then F#*K unit trusts...

These things were created for those who are retiring....

@mukiha whether one has knowledge or not doesn't really matter....

Throw all your money into a bluechip stock now and check it out 15 years later...

I guarantee it will have returned WAY more than a unit trust...

Though i admit within the next two years I'll be opening up one...

Ok guys....to me unit trusts and insurance policies for example ati education; investment etc etc etc………are the same…..

I will never invest in unit trusts ama insurance policies which promise to pay me a lamp sum after 15 or 20 years....


My reasons: These guys use my money to buy shares and trade in them....make lots of money and pay me peanuts!!! NOT ME!


I'd better study hard to know how these investments are done then go ahead and do it myself!

I WILL NEVER MAKE SOMEONE ELSE BE INCHARGE OF MY MONEY.......NO ONE CAN TAKE CARE OF MY MONEY LIKE I CAN!!

Where do insurance companies invest in???....the NSE

Where do mutual funds / unit trusts invest in??.....the NSE

Therefore i will do that myself....kama mbaya ...mbaya...kama sawa.....sawa!!

Unless i want to call the shots and have control....i will invest in a private equity firm like centum!!

Tell me any of the richest guys who ever invested in unit trusts

All i know is that ....all wealthy guys worked themselves to make their own money by investing themselves or taking large stakes and controlling companies e.g Warren Buffet.

@njung'e @guru....it is true that we remain poor coz of lack of knowledge......that is why majority of people are poor.....most of them have bought insurance policies and are waiting for 15 or 20 yrs to be paid ...what they are doing for the next 15 or 20 yrs ....ni ku-contribute premiums

This reminds me of mortgages!!! another no go zone!

@mjuaji;

I think you are quite young, aren't you? I remember the first time an insurance agent came to sell me some policy. That was 20 years ago and I had just started my first job. I told her that at the time I had no dependents..."nobody would surfer financially if I died today", I told her.

That's the point about insurance; it's not an investment!

I have a vision that my children will go to top-class universities when they finish with school. But that vision assumes that I will be alive and able-bodied when that time comes.

What if I died tomorrow? Or was in an accident and was left permanently disabled? Where would the money come from?

When those thoughts cross my mind; the vision of my children going to some nice university suddenly blows up to pieces. That's why I took and education cover for each of them.

Yes; you can say that I can save and invest for better returns than the insurance cover. But that also assumes that I will be alive and able bodied tomorrow to earn the money to invest...

@mukiha...young is relative....what do you mean by saying young....or do you mean young chronologically ama?

Ok....20 yrs ago....so somebody scared you that you may die bla bla bla...but look you are still alive....have you ever had any insurance guy telling you something good when selling the policy to you??? ,,....of course not!!

Scare the hell out of someone then ....get the money!!

Mimi siwezi kubali!!

Acha nicheze na pesa zangu....The race is not to the swift......time and chance happen to us all!!

Its more than assuming that todays blue chips, will be tomorrows blue chips too...take an example from in the past 18yrs, there have been 17 changes in the constituents of the NSE-20.
"Many shall be restored that are now fallen and may shall fall that are now in Honour"- Horace-Ars Poetica

Well, while I agree with you that a smart investor would rather employ his knowledge and discipline in seeking a higher rate of return in the markets I differ with you on the insurance issue. Now, insurance cushions one, or his dependants, incase something happens to him say an accident. If you have invested in the markets for say 5yrs and something happens to you and your hospital bill is say 3m plus disability which prevents you from trading then your entire fortune will go down the drain.
My 2 cents? Do not invest in the investment linked insurance packages if they do not suit your taste but at least get a life cover and personal accident cover. In addittion to this invest time to learn the markets, invest and have the discipline to do this for the rest of your life. Mutual trusts may be ok after you are done making enough money and are too old to even type.

@winston and what happens when the make returns of 200% in a year with YOUR money?

They give you back 8%.... Total crap....

I'd rather keep my money in a risk free bond or fixed deposit account....

@guru267

I think we can't generalize, last year my portfolio (Kenya) made 70% while my unit trusts made 130% so what would you advice...seek more knowledge!! and note i am not an active investor.