What Is Unit Trust
Investment linked insurance policies ilps are another way to invest in funds.
What is unit trust. A unit trust is an open ended grouped investment product which means there is no limit to how many people can invest in it or how much can be invested. The major difference between a unit trust and a mutual fund is that a mutual fund is actively managed while a unit investment trust is not managed at all. A unit trust is an unincorporated mutual fund structure that allows funds to hold assets and provide profits that go straight to individual unit owners instead of reinvesting them back into the.
The value of investments unit prices and income distribution may go down or up and the investor may not get back the original sum invested. You buy units with the investment you make in a unit trust. A unit trust is a form of collective investment constituted under a trust deed.
In this guide the term fund will also refer to a unit trust. A unit trust is a fund which adopts a trust structure. Not all funds use a trust structure.
A unit trust pools investors money into a single fund which is managed by a fund manager. Unit trusts offer access to a wide range of investments and depending on the trust it may invest in securities such as shares bonds gilts and also properties mortgage and cash equivalents. A unit investment trust uit is an investment company that offers a fixed portfolio generally of stocks and bonds as redeemable units to investors for a specific period of time.
Past performance of a fund should not be taken as indicative of its future performance.
