Unit Trusts (Mutual funds) vs Equities or FX

[babymush]

Hi Guys,

Just a short question.

Why would people buy Unit Trusts (mutual funds) as compared to directly purchasing Equities or FX?

Diversification? But however, UT have been known to do poorly as compared to the broader market index.

Risk is not that low too.

What group of people would be interested in purchasing UTs?

Does anyone know of any good UT forums to recommend?

Thanks all

 

[Mornington Crescent]

I am not exactly a group but I regularly trade unit trusts

and for a number of different reasons.

you should treat them just like any stock
if they are not performing dump them

 

[babymush]

But how do you do your analysis for Unit Trusts? Based on Fundamentals or Technicals?

 

[Glenn]

"Why would people buy Unit Trusts (mutual funds) as compared to directly purchasing Equities or FX?"

Many (all non-SIPP ?) pension funds provide a choice of mutual funds to choose from, and nothing else.
e.g. Standard Life:-
http://uk.standardlife.com/content/policy/sl_funds/PS4/prices.html

However this should include a 'Cash' fund so that you can hop out of the markets/funds when you think they are heading down.
Personally I use technicals only, same as for my futs trading.
Glenn

 

[babymush]

Ahh thanks

But do you analyse the individual funds or the markets that it is buying into?

Any help on where to start on this? or any websites?

 

[Mornington Crescent]

Ahh thanks

But do you analyse the individual funds or the markets that it is buying into?

Any help on where to start on this? or any websites?

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Not sure what you might mean by "analyse"

I chart a stable of funds split by geography and sectors (oeic and offshore)
so I guess that means technical
stuff the fundamentals. Thats up to the fund manager.

what sort of website are you after ? tipsters ? or general info ?

I usually recommend people to start with Fidelity.co.uk
There are several newsletter types. search Find.co.uk