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Investment Segment

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February 27th, 2014

Say Goodbye ToCredit Card Blues

I recently graduated from University and have my first job. I am anxious to get my credit card but my older friends keep warning me against it. Is this something I should consider? How can I manage it?

Having landed your first job you need to be cautious with your spending, so your friends are right when it comes to getting a credit card.The question is, do you really need it? To put it simply, credit is the ability to borrow money based on promise of a future repayment.  This is how it works:  The credit card will allow you to borrow and spend up to an agreed limit. Your spending limit – or credit limit – will be decided by the provider and depends on your individual circumstances, taking into account factors such as incomeand your current financial status.

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My wife says we should not put all our eggs in one basket.

Why not? We have been benefitting from good returns in one investment.

Your wife is correct, you should never put all of your eggs in one basket. Think about it: what happens if this investment fails to deliver on promised returns? You could lose everything.  At the Unit Trust, we live the credo of diversification:allocating investments among various financial instruments, industries and even geographical regions to reduce the overall level of risk.

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February 4th, 2014


I have friends who are always telling me that I should consider investing. Is this something I should consider going forward in 2014?

Making a decision to invest can seem daunting for a newcomer to the world of finance. However, saving alone would not enable you to gain financial independence. Yes, there is a marked difference between saving and investing and understanding the distinction will help you to better prepare for your financial future.

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November 21st, 2013

Managing Risk and Return

“I am more concerned about the return of my money, than the return on my money.”  Mark Twain. This quote from the celebrated US author still rings true today. In today’s volatile environment investors want continuous assurance that their investments are not jeopardized by frivolous and uninformed decisions or driven by unreasonable promises of quick returns.

Like life, saving and investing are full of risks.   What you want to do is mitigate those risks. In reading about investments, you’ve probably encountered the terms “risk” and “return” and wondered what they mean.  Risk is the chance of loss on your investment while return is the income or gain you receive on your investment.  For us at the Unit Trust, our focus is to manage risk in a way that investors have the best opportunity for consistent, competitive returns. We take this responsibility very seriously. Read More

October 9th, 2013

For Better or for Worse

Getting married is one of the most important decisions you’ll ever make. Not only is choosing the right partner critical for your happiness, but saying, “I do” also affects your financial life in ways you might not realise. 

Marriage injects us with a reality for which we might be unprepared.  Getting intimate with your partner’s credit card debt and loans and spending habits might not be the ideal conversation but pre- nuptial planning and honesty can help mitigate some newlywed nuisances.

As clichéd as it sounds, a budget could help mitigate a couple’s stress. You both need to know how much the bills are and how the money is invested going to be invested. Otherwise,   as a couple you may find yourself not knowing what financial resources are. Read More

Warren Buffet once said, “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that you’ll do things differently.” One of the most common mistakes investors make is not thinking holistically about their portfolio. Instead, they tend to examine each individual investment and overreact to the ones that are performing poorly or experiencing volatility – a recipe for financial ruin.

To both the novice and seasoned investor, volatility is the tendency of a market or security to rise or fall sharply over a short period of time. Changes in monetary policy, economic crisis and even the threat of war are forces that can contribute to stock market volatility. For example, in the energy sector, a major weather storm in an important oil producing area can cause prices of oil to spike in either direction. As a result, the price of oil-related stocks may follow suit. Some may benefit from the higher price of oil while others may be impacted negatively. This increased volatility can affect overall markets as well as individual stocks. Read More

As much as we hate to think about it, life doesn’t always go to plan. Unexpected illness, injury or death could strike at anytime and leave your family, spouse and even yourself in some serious financial trouble. The financial toll on you and your loved ones can be crippling.

Having the right measures in place can provide you with invaluable financial support if the unexpected happens. Insurance, a ‘rainy day’ or emergency fund and budgeting are all easy, affordable measures you can put in place to make sure your financial needs are addressed in the event of an unexpected illness or death. If you think life insurance isn’t something to be concerned with ask yourself this question: If you were to pass away, could your family maintain their quality of life to an acceptable level? Could your spouse and children afford to cover your outstanding debts and live from week to week without your income? The answer is probably no. Read More

Once you start earning a monthly income and begin to have dreams about what you want in life, from owning a new vehicle to purchasing a home or even travelling the globe, you have set goals that have a cost attached to them. Meeting those goals requires an investment portfolio that is right for you.

What exactly is an investment portfolio? It is a collection of assets aimed at achieving one or more investment objectives.  These may include making immediate profits, earning regular income, growing as well as preserving the initial principal invested. The investment instruments available to you include mutual funds, money market instruments, bonds, stocks and alternative assets such as land and rental property. Read More

Losing a job is often traumatic, but it doesn’t have to be a financial disaster. For a variety of reasons —job terminations, layoffs, downsizing, mergers or reengineering — spells of unemployment are realistic occurrences for many people. We live in turbulent times and no one is immune to job loss.

In times of such stress, it’s easy to make hasty financial decisions that turn out poorly. So in the immediate wake of your job loss, don’t panic by cashing in your retirement plan, savings from insurance or selling off long-term investments or make any financial decision until you’ve worked out a realistic plan for dealing with your reduced income. Read More

Vacations are often perceived as a budget killer, but they do not have to be. If a week at Disney World or a jaunt to a classy beach resort is already on the radar, you’re probably looking at a serious expenditure and careful, long term planning would have gone into making this a reality. However, many families face the possibility of going into debt while taking the much anticipated holiday.

To the uninitiated, the first rule of thumb for planning a vacation is to prepare a budget and identify the expenses so you are aware how much you are spending – From booking reservations to toothbrushes and medicine, everything adds up. Make a checklist of all of the financial needs if the vacation is overseas (airfare, car expenses, hotel, sightseeing etc). Will this vacation be a family outing or will it be you and your significant other? Next, factor in when you will be going. In three months? Next year? Answering these questions will help you allocate time and money in the most efficient way while on vacation. 

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