Unit Trusts & Open-Ended Investment Companies (OEIC)

These pool together a collection of investments into a fund for which you can purchase single units. There is a choice of over 2,000 available in the UK with each adopting an investment strategy so you can invest according to your attitude to risk. Their main function is to make money for the shareholders, achieved by investing in different asset classes such as equities, fixed interest investments and property. By using economies of scale they facilitate access to professional investment management for small investors.

The value of each unit in a Unit Trust is determined by the overall value of the fund which moves in line with the share prices of the investments within the fund. As an OEIC is formed as a corporation, the manager must create shares when money is invested and redeem shares as requested by shareholders.

The value of your investment is not guaranteed and with higher risk your investment is more susceptible to the volatility of the market.