Episode description
Episode description
In this episode, Warren Ingram and Kelin Pottier, Solutions Strategist at 10X Investments, discuss the different ways to store cash in unit trust funds. They explore the concept of income funds, which aim to deliver a high level of income while maintaining capital stability, the risks involved in income funds and the importance of regulations and diversification in managing these risks.
Takeaways
- Unit trust funds offer different ways to store cash, including money market unit trusts and income funds.
- Income funds aim to deliver a high level of income while maintaining capital stability and have a strong bias towards capital protection.
- Risks in income funds include interest rate risk and credit risk, which investors need to consider when selecting funds.
- Regulations and diversification play a crucial role in managing risks in income funds.
- Investors should prioritize risk and return when choosing income funds and be cautious of excessive risk-taking by fund managers.
- Assessing the duration and portfolio composition of income funds can provide insights into the risks involved.
For more valuable insights from the 10x team, click here.
Have a question for Warren? Don't forget to voice note your questions through our WhatsApp chat on (+27)79 807 8162 and you could be featured in one of our episodes. Follow us on Twitter, LinkedIn and subscribe to our YouTube channel for more Financial Freedom content: @HonestMoneyPod