Unit trusts
Unit trusts are a simply a 'pooled investment'. A fund manager buys shares in a range of different companies and pools these into a fund where you then buy 'units' in the fund.
The fund manager decides upon the investments for which the money will be used, and it is then invested in a range of companies, which reduces the overall risk. The risk is spread because the fund contains a range of shares and is not over-reliant on the performance of individual shares.
There are thousands of unit trusts in the UK, giving investors a wide choice when it comes to investing their money. The risks involved with unit trusts can vary depending on the type of investments made through the fund. You should look into and consider these investments carefully before you make a decision, and you must consider just how much of a risk you can afford to take.
You can withdraw and add funds to a unit trust and you may choose to spread your investments across a range of unit trusts and have a choice of income and / or growth, but bear in mind that this type of investment, and any income from it, may fall as well as rise and you may not get back your original investment.
Our team at Samuels Financial can provide you with further information about unit trusts.
