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Collective Investments

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Collective Investments

Getting the right advice from the start is vital.

Getting the right advice from the start is vital.

Huge Servers Investing in the future

Unit Trusts

Unit Trusts are a common type of collective investment.

A unit trust is a large fund of monies and/or investments pooled together and controlled by trustees with the aim of gaining capital appreciation, income, or both.

Please Note: The value of investments and the income from them may go down. you may not get back the original amount invested.

Investment Trusts

An Investment Trust also works in a similar way to Unit Trusts and OEICs, with the major difference being that Investment Trusts are companies listed on the London Stock Exchange whose sole purpose is to invest their shareholders funds in shares of other companies or securities.

Please note: Some funds will carry greater risks in return for higher potential rewards. Investment in smaller company funds can involve greater risk than is customarily associated with funds investing in larger, more established companies. Above average price movements can be expected and the value of these funds may change suddenly.

Open Ended Investment Companies (OEICs)

An OEIC works in a very similar way to a unit trust except that an OEIC is legally constituted as a limited company (Plc). OEICs have been operating outside the UK for some time, but only since 1997 has it been possible to operate an OEIC in the UK.

OEICs are not trusts and do not therefore have a trustee. Instead, however, they have a depository which holds the securities and has similar duties to a unit trust trustee.

 

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Please note: Some funds will carry greater risks in return for higher potential rewards. Investment in smaller company funds can involve greater risk than is customarily associated with funds investing in larger, more established companies. Above average price movements can be expected and the value of these funds may change suddenly. The value of investments and the income from them may go down. you may not get back the original amount invested. The value of your investment can fall as well as rise and is not guaranteed.

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