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Those needing to withdraw dividends earlier should use it for another investment instead of buying new cars or to travel, Shamsuddin further advised.
SHAH ALAM – Passive or active investors should be armed with knowledge before invesing in any unit trusts, said financial consultant Shamsuddin Kadir.
He said investors should compare between at least three banks to look at rates offered and ensure they could afford the investment and allow the investments to grow for at least ten years.
“It is better if we use the same bank account with the salary account to finance the investment,” he said, adding that the money would be deducted automatically to prevent default payments.
He further said investors should not be in debt to pay their monthly payment.
“Currently I observe many who take dividends buy cars or travel overseas. That is why their investment has not brought any yields.
“But those who take out their yearly dividends to buy land, that is fine,” he said.