Unit Trusts Guide
What is a unit trust?
A unit trust is a type of collective investment scheme,
which invests in a selection of stocks and shares to form
an underlying portfolio. This is divided into units, which
can be bought by investors. You can invest a lump sum and
/ or monthly and there are no restrictions on how much you
can invest. Each unit trust has a specific aim, which determines
the type of stocks and shares in which it invests.
Stocks and shares are usually selected by the unit trust
manager and are professionally managed on your behalf.
The underlying make up of a unit trust depends on its investment
objectives, but generally they offer the option to invest
for growth, income or both. You can select a unit trust
that best matches your own needs.
If you are aiming for capital growth to build up a valuable
nest egg for the future, investment in a unit trust that
offers accumulation units may be appropriate. Should income
be your priority, it makes sense to consider a unit trust
aiming to produce a high income. If you need any help, please
contact us and speak with one of our qualified financial
advisers.
A unit trust should be considered as a longer term investment,
of at least 5 years. If you are likely to want access to
your money within this timescale, unit trusts may not be
suitable for you. If you need any help, please contact us
and speak with a qualified financial adviser.
