Unit trusts have become one of the most fashionable and convenient individual-oriented investment products available. Simply pay your money into the fund and watch it grow. However, some are of the opinion that there simply are too many funds to choose from. See for example this list of unit trusts. There are more than a 1000 (1025 last September).
A very interesting comparison with other countries’ unit trust business is also made in the Moneyweb article. For example India, with its population of 1.2 billion (compared to SA’s 51.7 million) has about the same asset value under management as South Africa, around $140 billion. This despite India’s $2.4 trillion market capitalisation of listed companies, compared to SA’s $903 billion. (These numbers are as at 31 December 2012, so it’s a bit outdated)
Any ideas on why unit trusts are so popular in South Africa?