It takes money to make money and the more you have the more negotiating power your money gives you. So if you have $100,000 how can you reap billionaire benefits? Simply pool your money with other investors so the volume of funds can purchase assets at reduced prices and give you other billionaire benefits too. Your answer is to invest in a unit trust.

Here are some strategies that billionaires employ:

1.Minimise Your Fees: Every time you trade an individual asset, you will pay a fee, so if you trade frequently the fees can negatively impact your profitability. Billionaires minimise their fees in two ways: investing for the long-term and negotiating lower fees. Unit Trusts help you to reduce your fees in two (2) ways:

a. the volume of funds commands discounts when it is used to purchases assets; and

b. you are not charged for each trade made on your behalf. Depending on the unit trust you may be charged an annual management fee. However, it is normally less expensive than paying a fee per trade.

2.Minimise Your Taxes: If, like billionaires, you love getting tax breaks, unit trusts are another great option. Most assets require that you pay to withhold taxes on earnings, whether in the form of coupons from bonds, dividends from stocks, and/or rental from the property. However, there are some unit trusts that are tax-free or offer tax-free benefits after a number of years.

3.Diversify Your Portfolio: David Swensen grew Yale University’s university endowment fund from US$1 billion to US$23.9 billion. According to him, “…spreading your money across different investments decreases your risk, increases your upside returns over time, and it doesn’t cost you anything.” Unit Trusts are already diversified across stocks, real estate as well as Jamaican and US dollars denominated bonds, among other instruments. However, if you want even more diversification, you can purchase into several unit trusts since each one is designed to protect you from a different type of risk.

4. Rely on Expert Financial Managers: Missed opportunities can be very costly. Imagine not getting the time to sell a stock before its price plummeted or missing out on the profit made on a stock because you were too busy with your daily life. Thanks to their financial advisors billionaires are often able to seize windows of opportunity without spending the time. You, too, can benefit from the time and expertise of a financial management team by purchasing units in a unit trust fund that is actively managed.