When choosing a UITF, investors should identify their needs and goals and match them against the investment parameters of the product. To determine the clients’ suitability to a fund, the following factors have to be considered:
- Investment capacity – the amount available for investment
- Investment horizon – how long a client can stay in the fund
- Risk profile – how much risk the client is willing to take
- Investment objective – what the investors seeks to achieve by making the investment, e.g. whether client wants income or capital growth
The investor should likewise be comfortable with the trustee of the UITF in terms of their expertise and skills in fund management.