My cousin just received his first bonus and checking with me if he can invest his bonus income in a unit trust, and doing so can be a smart way to grow his wealth over time.

Here are some key points to consider specifically for someone in a white-collar profession:

### Advantages of Investing in Unit Trusts

1. **Professional Management**: Unit trusts are managed by professional fund managers, which can be beneficial for someone who may not have the time or expertise to manage their investments actively.

2. **Diversification**: By investing in a unit trust, he can gain exposure to a diversified portfolio of assets, which can help to spread risk. This is particularly important for long-term investing.

3. **Accessibility**: Many unit trusts have relatively low minimum investment requirements, making them accessible for individuals ready to begin investing their extra income.

4. **Long-Term Growth Potential**: Given that a bonus is often a lump sum that can be set aside for the long term, unit trusts can help build wealth through compound growth over time.

### Considerations Before Investing

1. **Investment Objectives**: He should clarify his investment goals, whether they are for retirement, a major purchase, or growing wealth. This can influence what type of unit trust to choose (e.g., equity funds, bond funds, balanced funds).

2. **Risk Tolerance**: Understanding how much risk he is willing to take is crucial. Different unit trusts carry different levels of risk, with equity funds generally being riskier than bond funds.

3. **Time Horizon**: If he plans to invest for several years or more, unit trusts can be a suitable choice. If he anticipates needing access to the funds in the short term, he may want to consider more liquid investment options.

4. **Fund Fees**: He should be aware of the fees and expenses associated with investing in unit trusts, as these can impact overall returns. Typical fees include management fees, entry and exit fees, or performance fees.

5. **Research**: It's essential to research the specific funds available to ensure they match his risk profile and investment strategy. Comparing historical performance, management style, and investment objectives can help.

6. **Consultation**: Finally, it may be beneficial for him to consult a financial advisor, especially if he's new to investing, to ensure his investment choices align with his broader financial planning.

### Conclusion

Investing a bonus in a unit trust can be a good way for your cousin to maximize the value of that income over time. If he follows a sound strategy that takes his individual circumstances into account, he can potentially achieve better financial outcomes.