For unit trusts, the cost of investment is sales charge, management fee, soft dollar commissions, bid-ask spread, impact cost and brokerage fee. My estimate of these cost is between 4.55% pa to 9.2% pa. The cost is even greater if the fund size is small.

For ETFs, the cost of investment is bid-ask spread, brokerage fee, management fee, impact cost. My estimate of these cost is between 0.90% pa to 1.55% pa.

Because of unit trusts extremely high cost, I do not recommend investing in unit trusts unless there are restrictions.

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