A Comprehensive Guide to Unit Trusts

A unit trust pools money from many investors into one portfolio, managed by a professional fund manager. You buy units, and the value of those units moves with the value of the underlying holdings.

The main advantage for most investors is diversification. Rather than holding two or three shares, your money is spread across a wide range of holdings, which softens the impact of any single one falling.

Access is another advantage. Most unit trusts allow monthly contributions, so you can start with a modest debit order and increase it as your income grows.

Costs matter and should be understood upfront. So should time frames: unit trusts suit money you can leave invested for several years, not funds you may need next month.

We help clients match a fund to a purpose, whether that purpose is wealth creation, retirement or future income.

This article provides general information and does not constitute personalised financial advice.