Unit trusts

Unit trusts are collective funds that allow private investors to pool their money into a single fund. This allows them to spread their risk over a wider range of asset types, pool together more expert advice and ensure economies of scale to reduce dealing costs.

Unit trusts are open ended in contrast to investment trusts which are closed funds. There are many factors to consider when investing in a unit trust such as the historical performance of the unit trust, the fees and commission charged. Perhaps the most important choice is to choose a unit trust with a successful fund manager at the helm.

	Unit Trusts vs Investment Trusts – What are the options? Charles Roberts is a UK based IFA who writes for various journals and publications. He recommends choosing an ISA as it is perfect for putting away a lump sum, tax free.
	My unit trust is not performing A reader from Hertfordshire is looking to move her investments.
	Investment Trusts: Time to trust or flee? The high level of public debt has led many to speculate that this government – or the next – will have to inflate their way out of it, which will once again be bad news for savers.
	Barclays sells iShares unit for £3bn Barclays has sold its iShares unit to CVC Capital Partners for £3 billion.
	Investment trusts Investment trusts are companies quoted on the London Stock Exchange whose sole purpose is to manage the investments they own.