Q & ACategory: OthersUnit Trust
YL asked 4 months ago

Hi KC, I need an advice whether i should withdraw the profit earned from a UT fund i have invested for the past few years and to leave the principal in the account? The price has been going up exponentially past few months and if i don’t withdraw, will i lose the profit when the price is going down in the future?

1 Answers
KCLau Staff answered 4 months ago

Hi YL,
I am not a licensed investment advisor and I couldn’t tell you what you should do with it.
Here are some guide for your to ponder:

  • When you withdraw/ redeem your unit trust funds, if you want to invest in the same fund again, it will cost you the upfront service charge again. So generally, that is not wise unless you don’t intend to invest in unit trust anymore.
  • the alternative is to switch the fund to fixed income fund or bond fund. That won’t incur extra charge when you invest back into the equity fund, except the switching fee which is minimal.
  • Many unit trust investors do portfolio rebalancing. That serves as a way to lock the gain too.

Your unit trust consultant might be able to give you advice.