Page 32 - Waterfall City Issue 8 August 2025

Waterfall City Finance

Five questions to determine
THE RIGHT

INVESTMENT

INSTRUMENT

By Linda Kleynscheldt, Head of Actuarial and Product, PSG Wealth

T he investment world has various investment Single-manager unit trust funds

In this type of investment instrument, one investment
instruments that form the underlying foundation
of the product/s you select. In the same way
management company selects and manages all the investments
as buying a car involves choosing a type of
vehicle and then deciding on a specific brand or model, in the fund. Consequently, all investment decisions are made by a
single team that follows a consistent investment philosophy and
investing entails selecting both the type of product specialises in a focused set of asset classes or markets.
and its underlying investment instruments, i.e. the
types of funds or asset groups in which you invest. Funds of funds
A fund of funds is a diversified portfolio that invests in several
Types of investment instruments other collective investment schemes (also referred to as unit trust
The main types of investment instruments available to funds). Unlike the single-manager unit trust funds approach,
investors are explained below: exposure to multiple underlying funds offers additional

30 Waterfall City Issue 8 2025