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.
Unit Trusts are made up of 'units'. Each unit will have both a buying price and a selling price. The difference in these prices includes the fund management charges. The number of units held, multiplied by the current price, gives the current value of an investor's holding.
These investments are open ended, which means that units are created every time an investor puts money into the fund, and liquidated when they withdraw money, so that the fund can react to demand and continually grow through prosperous periods.
Investors can then enjoy the benefits of larger investments including discounts, however during periods of poorer performance, the fund may need to sell assets to enable investors to withdraw their monies, so the fund size is reduced.
THE VALUE OF INVESTMENTS AND THE INCOME FROM THEM MAY GO DOWN. YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED.
Read less
CONTACT US
Metcalf Wealth Managers
Suite 3, 10 Churchill Square
Kings Hill
West Malling
Kent
ME19 4YU
T: 01732-780613
Email Us
The levels and bases of taxation are subject to change
The guidance provided within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK. This site does not confer any form of personalised financial advice, should you wish to receive specific financial advice please contact us.
Metcalf Wealth Managers is a trading style of The Metcalf IFA Consultancy which is an appointed representative of TenetConnect Limited, which is authorised and regulated by the Financial Conduct Authority. TenetConnect Limited is entered on the Financial Services Register (www.fca.org.uk/register) under reference 149826.
© Copyright 2019 - Adviser Pro - All Rights Reserved
Design and Developed by Adviser Pro © 2019