A unit trust is an investment fund that pools money from many investors and invests it in a range of assets such as stocks, bonds, and other securities. The fund is managed by a professional fund manager who makes decisions on how to invest the money to achieve the best returns for the investors.
Unit trusts are a type of collective investment scheme that pools the money of many investors and invests it in a range of assets, such as stocks, bonds, and other securities. The money is managed by a professional fund manager who makes decisions on behalf of the investors. The fund manager is responsible for selecting the investments, monitoring their performance, and making changes as needed.
Unit trusts are a popular choice for investors who want to diversify their portfolios and spread their risk across a range of assets. They are also a good option for those who don’t have the time or expertise to manage their own investments.
Unit trusts are typically open-ended, meaning that new investors can join at any time and existing investors can withdraw their money at any time. This makes them a flexible and liquid investment option.
Unit trusts are regulated by the Financial Conduct Authority (FCA) and are subject to certain rules and regulations. These include the requirement to provide investors with regular updates on the performance of the fund and to ensure that the fund is managed in the best interests of the investors.
Unit trusts can be a good option for those looking to invest in a range of assets without having to manage their own investments. However, it is important to remember that the value of investments can go down as well as up, and investors may not get back the amount they originally invested. It is therefore important to do your research and understand the risks before investing.