We'd all like to get the best out of life and usually this involves having the financial means to meet our goals. You may want to buy a car or a house, go on a dream holiday, and even start your own business. Meeting your goals may be easier than you think if you start saving today. Investec unit trusts can help you get there.

• Types of unit trust funds
• Choosing the unit trust that's right for you

Types of unit trust funds

Equity funds

The main objective is to grow capital by investing in the broader stock market or in specific equity sectors such as resources, financial and industrial funds. Equity funds predominantly invest in shares listed on the Johannesburg Stock Exchange (JSE). At least 75% of the market value of these funds needs to be invested in equities at all times.

Fixed Interest - Bond funds

These funds invest in a variety of interest-bearing assets such as bonds and fixed deposits, with the main objective of growing capital and to provide a high level of income. Fund managers may invest in short, intermediate and long-dated stocks – the duration of which will depend on interest rates, inflation and the rand. These funds are usually less volatile than equity funds.

Income funds

The main objective of income funds is to provide a high level of income on a consistent basis. These funds invest in a variety of interest-bearing assets such as bonds and fixed deposits. The average maturity of the portfolio's assets may not exceed two years to ensure relative capital stability. These funds are usually less volatile than bond funds.

Money market funds

Also known as cash funds, these allow investors to "park" their money short-term. Fund managers invest in interest-bearing assets with a maturity of less than one year. These are highly liquid investments that offer capital preservation with minimum volatility. These funds have lower volatility than traditional income and bond funds.

Asset allocation funds

Also known as balanced or managed funds, these are for investors who do not actively want to manage their own allocation of assets. Rather, a fund manager invests in a spread of assets such as equities, bonds and cash depending on market conditions. These funds have different levels of volatility as some are permitted to invest in more equities than others.

Global funds

Diversifying your capital across global markets can help to reduce the overall risk of your portfolio. Investec unit trusts offer exposure to international markets with a host of international rand-based and foreign denominated funds to choose from.

Choosing the unit trust that's right for you

After 15 years of helping people and institutions grow their money, we understand that each individual is different. We're dedicated to helping you choose the option that's right for you, depending on what you need. If you're thinking about investing in unit trusts, it's important to consider the following:

• Your investment objectives. Why you're investing – for example retirement income, a bond, or a holiday home – will determine which funds are suitable for you.
• Your time horizon. Whether you need access to your capital in six years or six months' time, choose a fund that matches your time horizon.
• Protection from inflation. To protect your capital from being eroded by the cost of living, you need to choose a fund that will produce returns well in excess of inflation over the long term.
• Market timing. As the average investor may find it difficult to time the market, you may want to consider phasing in your investment over a few months.