Page 53 - Profile's Unit Trusts & Collective Investments - March 2025

Basic Concepts

especially if financial adviser commissions are included. The majority of unit trusts, however, no
longer charge upfront fees. The costs of maintaining an online stockbroking account are low.
Typically a small fixed monthly custodial fee is levied, not a percentage of portfolio value. This
makes stockbroking accounts cost-effective for larger amounts of capital.
Overseas, investment trusts are considered more risky than unit trusts because they can invest
in unlisted shares and physical property, and because they can borrow money and use derivatives
without any material regulatory restrictions. They remain popular in the United Kingdom.

Profile’s Unit Trusts & Collective Investments — Understanding Unit Trusts 51