What is the purpose of investing?
To objective is to let the money grow itself even while we are sleeping.
As the money keeps rolling itself, it will helps us to our different needs,
i.e. University Fees for children, Retirement Funds, etc

The question is how best could we invest our money?
There is no definite answer to these as it will be based on our risk appetite.

Having invested for almost 18 months, I wish to share my views. It may not be the best, hopefully, it could provide a suggestion for yourself.

Go for Dividend-Yield Unit Trust if you want to invest your money for the long-term.
There are a few categories for dividend-yield unit trust.
1. Balanced Fund - comprises of equity and bonds
2. Income Fund - comprises of equity that had a regular payout of dividend
3. Property Fund - comprises of equity that make up of property firms and REITs.

In most cases, all the funds listed above have a regular income distribution. Care must be taken especially for Balanced fund as not all have a regular income distribution. You could check it out in the fund prospectus.

The pace of growth for this type of Unit Trust might not be aggressive as compared to those Unit Trust that go for growth companies. However, with the regular income distribution, it could lower down your cost of purchase.

Just a simple illustration,
Unit Trust A cost $1.00 for each unit, I invested with $1,000 dollars.
It stated that it will pay a regular income of 5 cents per unit yearly.

Amount invested = $1,000
Total Units I owned = 1000 units.
Cost of each unit = (1000/1000) = $1.00 per unit.

Assuming the price is fixed throughout the one year period, and I got a regular income distribution of (0.05x1000)= $50. The income distribution is opt for dividend-reinvestment, hence, I would get an additional of 50 units.

Amount invested = $1,000
Total Units I owned = 1050 units.
Cost of each unit = (1000/1050) = $0.95 per unit.

In the long run, this investment strategy will definitely grow as the years passes by.

Learn more about this author, Dhammapiya.
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