Yes, it is worth to invest in Unit Trust if you are not well verse to do investment on your own. Historically Some Unit Trust have been shown to beat inflation.

Typical annual fee is 1.5% or slightly more. Some may be as low as 1%. Bond fund can be as low as 0.5% p.a.

Some Mutual Fund from the US has annual fee as low as 0.1%, but that is US, not in Malaysia.

Typical question you should ask when investing are:

i) What is the historical return over 10 years, 5 years or 3 years. They should be preferably above 5% because the typical inflation in Malaysia is around 4% p.a. So the investment must work harder than 4% p.a. (I use 5% to put in some buffer)

ii) How volatile or how much is the standard deviation of the fund? The larger the standard deviation the more volatile the fun i.e., more chances of the fund not hitting its objective.

iii) What are the charges? The lower the better i.e., common sense.

So now, go lar... quickly make your money work harder for you and not you work hard for the money. Good luck.

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P/S: Practice dollar cost averaging i.e., put in little by little and and not one lump sum to minimize the risk.

For PM, if I can recall correctly.. When you fill in the form for buying a fund, you can tick on the dividend being re invested or not. Most agent will advice to re invest.

It is wise to choose the auto reinvest dividend option simply because the dividend reinvested is free from the initial sales charge.

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