Why fund managers see unit trusts growth despite rates dip

Falling interest rates on the asset class have not deterred the entry of fund managers as the CMA continues to approve both new players and products.

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Fund managers expect the continued growth of unit trust assets under management (AUM) despite a drop in interest rates, with investors being seen to favour protecting their initial investment in the asset class over chasing higher returns.

Returns from the unit trusts or collective investment schemes (CISs) have been on a gradual decline in recent months as domestic interest rates mark a downward trend from reduced macroeconomic risks.

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Note: The results are not exact but very close to the actual.