Unit trust sav­ing

CityPress - - Business -

Cordelia writes:

I’ve been sav­ing R2 000 a month since Jan­uary in a 32-day no­tice ac­count, but I am not earn­ing much in­ter­est. Should I in­vest in a unit trust? City Press replies:

You need to de­cide what this in­vest­ment is for.

If it’s for a short-term goal and you will want to cash it in within the next year, you do not want to take too much risk and should rather leave it in the 32-day no­tice ac­count.

But if you’re plan­ning on sav­ing for the next three to five years, you should look at an in­vest­ment that can give you growth over that pe­riod, such as a unit trust or ex­change-traded fund.

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