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With so many funds to choose from it becomes harder to choose a unit trust that won't steer you wrong. With so many choices it can be tricky to pinpoint the goals of the funds and whether they match with your goals. Here are three things to consider when choosing a unit trust.

1. Are you looking for stability, income, or growth?
If growth is what you seek then you are looking for the investment to increase in value over time. If you are looking for stability then you are looking for a unit trust that will protect your investment. This is the first of three things to consider when choosing a unit trust.

2. What is the funds investment strategy?
You will want to obtain the fund fact sheet and prospectus from the company which will outline what securities and shares the fund might invest in and what their method of selecting them is. It will also outline the funds investment practices as well as how the fund has done in the past 1 to 10 years. Of the three things to consider when choosing a unit trust this requires the most research.

3. Knowing the risk
One of the three things to consider when choosing a unit trust is to know the risks. Funds go up and down and that's the risk you need to understand. There are types of risks that you need to be aware of.

Currencies, politics, inflation ' these are all other risks you face. If you are investing out of your country currency and politics are a big risk factor. Inflation may be a big or small risk factor depending on the economy at the time of investment. Understand your risks.

Consider any fees attached to both purchasing and selling the unit trust and you'll want to note if there is a lock in. Selling before this period and you will pay a penalty which can be substantial. Of the three things to consider when choosing a unit trust this is the most critical of the three things to consider when choosing a unit trust

These three things to consider when choosing a unit trust are just the beginning. There are many things you need to watch for but it will get you going. In fact now that you know what three things to consider when choosing a unit trust you should be prepared to shop wisely?

There is no need to choose any one of the three things to consider when choosing a unit trust because you need to be involved in all strategies.

Copyright ' 2007 Joel Teo. All rights reserved. (You may publish this article in its entirety with the following author's information with live links only.)