Professional management
Few of us are experts of the stock market. The great thing about investing in unit trusts is that you don't have to be one! You can sleep soundly knowing that your money is in the hands of experienced professionals who continuously monitor a fund's performance round-the-clock. These fund managers have access to important, up-to-the-minute information about markets and companies, and will decide when is the right moment to buy or sell.

Spreading the risks
When your money is at stake, it's important to spread the risks of your investments as widely as possible. The advantage of investing in unit trusts is that you pool your money with other investors and buy into a range of shares which usually comprises between 40 and 50 companies. Should the value of one company's shares fall, it's more often than not made up for by a rise in the value of other shares in the fund. As an individual investor, you wouldn't be able to achieve this kind of risk diversification simply because you wouldn't be able to draw on such extensive financial resources.

You're in control
Although unit trusts are managed by experienced fund managers, you remain in complete control of your investment portfolio, since you decide which markets to invest in, how much to invest, and when to buy and sell your units.

Complete liquidity
With unit trusts, you never have to worry about finding a buyer for your units. This is because the fund manager is obliged to buy back your units whenever you decide to sell them. This is unlike investing in stocks and shares where you may not be able to find a ready buyer when you want one.

Access to specialised markets and Overseas opportunities
Unit trusts give you the opportunity to invest in specialised and Overseas markets. Again, it would be difficult or impossible for an individual to access such markets directly as to do so requires much time spent on careful research to gain in-depth knowledge of these markets.

Know what kind of an investor you are
Are you a risk-taker, prepared to weather a few knocks in exchange for the possibility of higher rewards? Or are you the steadier, more conservative type who prefers to opt for lower returns but greater security and stability? Know your risk appetite and you are on the way to choosing the right unit trusts.

Think medium- to long-term
Most unit trusts offer potentially good returns over the long run. However, be prepared to hold onto your investments as unit trusts are regarded as medium- to long-term investments. Just like many other investments, the value of unit trusts can rise and fall on a daily basis. But don't panic. If an investment temporarily falls, this can sometimes provide an excellent opportunity to invest more money, averaging your unit price while the market offers good value.

Be sure to diversify
All unit trusts spread risks to some extent by investing in a range of stocks. However, you can take this one step further. Spread your own risks by investing in a variety of unit trusts which allows you to meet all your investment objectives under the same "family tree".

You may want to use our Investment Wizard to guide you in choosing the right unit trusts for your investment.

You can check our UOB Asset Management's (UOBAM's) unit trust prices daily by looking at Today newspaper. You can also check out these prices on Reuters at "UOBAM" and on Bloomberg at "TKUOB".

You can also call our 24-hour customer service hotline number at 1800 222 2228 to check the prices. Alternatively, you can surf our Fund Price and Fund Performance webpages.

To keep you updated over the longer term, UOBAM sends you our quarterly Fund Focus magazine that summarises the main features of our unit trusts and their performance, as well as market reviews and outlook.

There is, however, no additional charge for using UOBAM Online

For unit trust purchased using cash, you have a choice of getting the dividends back in cash or re-invested into the same fund for more units. You give us your dividend instruction at the point of purchase and you can change your instruction by sending us the "Change of Dividend Instruction(s)" Form. The Form is available at "Bring me to..." > "Material Request" > "Forms".

For unit trust purchased using monies from CPF Ordinary or Special Accounts, or SRS Account, your dividend will be paid to your CPF Account and SRS Account respectively.

There is no capital gains tax in Singapore and you will not be taxed on your profit when you sell your investments in a designated unit trust unless the gains are derived from a trade of buying and selling the investments in unit trust.

In general, the tax rules for the distributions from a designated unit trust (other than those made out of underlying franked Singapore dividends received by the unit trust) are as follows:-

• If you are a Singapore resident individual investor, the distributions will be exempted from tax if the distributions are not considered as gains or profits from any trade, business or profession, or derived through a partnership in Singapore.

• If you are a Singapore resident institutional investor, or if the distributions are considered as gains or profits from any trade, business or profession, or derived through a partnership in Singapore , the distributions will be taxed.

• If you are a non-resident investor, the distributions will be exempted from tax.

Distributions from a designated unit trust paid out of underlying franked Singapore dividends will continue to be taxed. Singapore resident investors can claim tax credits against the income tax paid on the income. Investors should submit the tax vouchers to the tax authorities together with their tax returns.

Non-resident investors should seek professional advice regarding the legal and taxation implications in their country of citizenship or residence.