Switches Old Mutual Unit Trust clients have the opportunity to switch between any of the Unit Trusts investment funds in review of their financial plan. One of the key factors of financial planning is having flexibility in your investment plan and being disciplined enough to stick to it.
A switch is a service offered to all our Unit Trusts Clients who because of a change in their risk profile levels, would want to rebalance their portfolio by either diversifying their portfolio wholly or partially amongst other unit trust funds with a different investment objective. Therefore switching is a useful concept used to compliment a change in circumstance that may lead to a change in your financial plan and ultimately your risk profile.
The client has several options to effect a switch. The clients may move investments in lump sum amount, or in smaller phases of specified amounts depending on their choice.
You can benefit from this incredible service within a day!
Email and fax instructions can be used to instruct us to effect this change click here.
An investment in shares can be changed to interest bearing assets such as T-bills/Bonds fixed deposits or vice versa easily.
This is done at no charge! Investors only have to contend with the fee differential between funds e.g If you initially paid a higher initial fee to enter a fund – you will not be charged again to adjust your risk profile to a lesser charged fund. This ensures that your investment is not subjected to double charging or penalty due to a change in investment preference.
Noting the flexibility that is apparent in these vehicles, switching should not be used as a speculative tool to move in between funds. Why? Because the market is, a cycle and the highs and lows are unknown. You may therefore switch out to realize your capital gain only to discover that the market is still rising! Conversely, you may switch into a product to take advantage of falling prices only to establish that the market is still falling!
Therefore, switching should be the result of an informed decision made after considering your current and future risk appetite which also matches your expectations on investment returns.
Re-positioning your investment portfolio can often be a daunting experience. We therefore strongly recommend that you discuss investment decisions with your personal financial adviser or contact Old Mutual Investment Services for more information click here.
