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How does DBS Unit Trust work?

Author

Emily Carr

Published Mar 18, 2026

How does DBS Unit Trust work?

A Unit Trust invests a pool of money, collected from a number of investors, in a range of assets. By pooling your money with that of other investors, you'll be able to invest in a wide range of assets. Successful investments in the assets add value to the fund and their returns are then distributed back to investors.

Regarding this, how do I redeem unit trust with DBS?

  1. Log in to DBS digibank App with your Touch / Face ID or User ID & PIN.
  2. Go to Invest tab and select Funds.
  3. Go to My Funds, select Redeem from the specific fund you want to redeem.
  4. Enter the Number of units to redeem.
  5. Verify your details and Place Order.

Additionally, can you lose money in unit trusts? Investment risk is usually lower than for other types of investments. A unit trust spreads your money across many investments. This means that if one investment doesn't work out, you won't lose all your savings. Still, you have the comfort of knowing it is unlikely you will lose all of your money suddenly.

Besides, how does a unit trust account work?

Unit trusts are unincorporated mutual funds that pass profits directly to investors rather than reinvesting in the fund. The investor is the trust's beneficiary. Fund managers run the unit trust and trustees are often assigned to ensure that the fund is run according to its goals and objectives.

How does unit trust pricing work?

The unit price is based on the fund's net asset value (NAV) divided by the number of units outstanding. You will need to pay sales or redemption charges when you subscribe to or redeem units. Recurring fees are paid by the fund and include management fees, trustee fees and other fees. These costs are passed on to you.

How do I terminate a unit trust DBS?

Under Manage Investments, click on View or Delete Regular Savings Plan (RSP). Select the fund that you wish to terminate and click on the Search button. Under Action, click on the Delete RSP button. Verify the details and click Delete to confirm termination.

How long does it take to sell unit trusts?

An instruction to buy or sell a fund, once confirmed, usually takes four days to complete and be shown in your completed transactions. Sometimes the transaction completes more quickly, but we suggest waiting five working days before contacting our experts to query a transaction settlement date.

How do I sell my unit trust?

To sell your units is just as easy as buying. Simply send a written instruction (called a repurchase instruction), accompanied by your unit trust certificates, to any authorized marketer or to the unit trust company.

What is the interest rate for DBS multiplier account?

What are the DBS Multiplier interest rates for 2021?
Total eligible transactions per monthBonus interest with the DBS Multiplier account
≥$2,500 to <$5,0000.4%1.4%
≥$5,000 to <$15,0000.5%1.6%
≥$15,000 to <$30,0000.5%1.7%
≥$30,0000.6%3%

What is the difference between unit trust and ETF?

An ETF, or an Exchange-traded Fund, is an index-tracking investment tool that is traded in a public market. With a Unit Trust, individual investors pool their money into a Unit Trust, and then the fund manager oversees the fund by investing in individual securities, such as stocks or bonds.

How do I invest in DBS?

Easily set up an Invest-Saver Plan using your DBS iBanking.

Investing regularly takes timing the market out of your hands.

  1. Step 1: Select “Invest” on the menu bar. Step 2: Go to "Make an investment"
  2. Step 3: Click on Info to view fund information.
  3. Step 4: Click on buy to purchase fund.
  4. Step 5: Confirmation.

Is unit trusts a good investment?

Unit trusts are a flexible, long-term investment

Unit trusts should be viewed as long-term investments. A lump-sum investment in a unit trust may prove to be the most profitable over the medium to long term. But there are a number of benefits of accumulating unit trusts on a monthly basis.

Does unit trust pay dividends?

Returns from unit trusts

Some funds pay dividends. The price of each unit is based on the fund's net asset value (NAV) divided by the number of units outstanding.

What are the advantages of unit trust?

Benefits of Investing In Units Trust
  • Diversification & Reduction of Risk. An investor's risk exposure is reduced by way of diversification.
  • Affordability.
  • Access to Professionals.
  • Flexibility.
  • Exposure to Different Assets & Markets.
  • Liquidity.

Are unit trusts tax free?

By law you can save R36 000 every year or R500 000 over a lifetime in a tax-free vehicle such as a unit trust. All interest, capital gains and dividends you earn will be completely tax-free (only applicable to SA tax residents).

How do unit trusts pay dividends?

Unit trusts include all the above-mentioned payments (dividends, income and interest) into one cash distribution that can be paid out or reinvested. The payments from the underlying instruments are accumulated in the unit trust and then periodically (monthly, quarterly or semi-annually) paid out.

What do you need to open a unit trust account?

To open a UTC account, you will need:
  1. Minimum of one form of valid identification — National ID card/driver's permit/passport.
  2. Proof of address — Utility bill*/bank statement (no older than six months)
  3. Proof of income — Job letter/pay slip (no older than one month)

How do you calculate unit trust profit?

Return for any investment asset is calculated by looking at the profit (or loss) made on the investment divided by the cost of the investment. Unit trust performance is gross profit (or loss); that is, the total Redemption Value minus the Capital Invested.

How much does it cost to set up a unit trust?

How much does it cost to set up a trust? Depending on the type of trust you require, our discretionary (family) trusts are $385.00 Inc GST and unit trusts are $485.00 Inc GST. Our fee includes the preparation of your trust deed in triplicate; these are professionally bound and ready for you to sign.

What is the best unit trust to invest in?

Best performing unit trusts in South Africa 2021
  • Old Mutual Gold.
  • Anchor BCI Global Equity.
  • Nedgroup Inv Mining&Res.
  • Sygnia FAANG Plus Equity.
  • Ninety One Commodity.
  • Allan Gray Balanced Fund.
  • ABSA Money Market Fund.
  • Coronation resources. Investing in a unit trust requires an open-minded individual with a bold heart.

What are the disadvantages of unit trust?

Disadvantages of Unit Trusts
  • Unit Trusts are not allowed to borrow, therefore reducing potential returns.
  • Bid/Ask prices exist - with the price that you can buy a unit for usually higher than the price you can sell it for - making investment less liquid.
  • Not good for people who want to invest for a short period.

Is unit trust better than EPF?

The constructed Conventional Unit Trust Portfolio was able to generate returns of +12.35% while the Islamic portfolio returned +8.72%. In comparison to EPF's 2017 dividend of 6.90% for Conventional and 6.40% for Islamic, both unit trust portfolios were able to outperformed EPF.

What is the risk factor of unit trust?

Market Risk - Fluctuation in the market caused by uncertainties in the economy, political and social environment will affect the NAV of the unit trust. Equity Investment Risk – The value of equity investment is mainly determined by its potential growth in earnings, amongst other factors.

What happens if fund manager goes bust?

What happens if a fund manager you're invested with goes bankrupt? Again, you get FSCS protection here if it's an authorised UK collective investment. If a fund you invest in does go bust, the platform will work to arrange the return of the correct amount of asset to you.

Which investments have highest returns?

The stock market has long been considered the source of the highest historical returns. Higher returns come with higher risk. Stock prices are more volatile than bond prices. Stocks are less reliable in shorter time periods.

What is annual management fee unit trust?

Annual Management Fees and Trustee Fees

The management fee helps to cover the costs of operating the fund as well as the fund managers' expertise in managing the fund. The trustee fee is charged by the trustee for providing custodian services for safekeeping the fund's assets.

How often are unit trust prices updated?

once a day

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