How to choose a unit trust fund?

I have seen unit trust which doesn't make any money at all. The interest that you get may even lower than the fixed deposit. What the heck?

Obviously, we want to invest in the better funds. But, how ?

1. Meet your financial objective

If you’re the looking for capital grow, choose funds that as the main objective of the fund (i.e. aggressive growth fund). If you’re looking for income, choose funds that pay dividend regularly (i.e. bond fund).

2. Good Management

Well, most of you may not know how good the fund management is. As a rule of thumb, just look at the company performance. Read their annual report. How many years the company has been survived? Is the company a leader in this field?

3. Good Track Record

Yes, I know past performance is not an absolute indicator of future performance. This is especially true if you invest in stock. However, we’re talking about unit trust here. This rule most of the time is applicable. But, keep in mind that it’s not 100% bullet proof.