Unit Trusts
Unit trusts are a popular investment vehicle today, they are 'open ended collective investments' which put the cash of many investors into one fund a 'pooled fund'. This system allows investors to invest "collectively" which has the benefits of spreading and reducing risk and keeping costs under control. Unit trusts allow you to invest in the stock market but enable you to spread your risk and benefit from expert investment management.
There are many unit trusts to choose from across a wide range of investment sectors. The managers of the trusts can buy and sell within the trust without having to pay any tax, however tax liabilities can arise on dividends and unit sales by the holder.
Unit Trusts
Unit trusts are a popular investment vehicle as they are 'open ended collective investments' which put the cash of many investors into one 'pooled fund'. This system allows investors to invest "collectively" which has the benefits of spreading the investments, reducing the risk and keeping costs under control. Unit trusts allow you to invest in the stock market but enable you to spread your risk and benefit from expert investment management.
There are many unit trusts to choose from across a wide range of investment sectors. The managers of the trusts can buy and sell within the trust without having to pay any tax, however tax liabilities can arise on dividends and encashment by the holder.