Header

Unit trusts/OEICS

Investment and Savings


Funds are less risky than individual shares. Unit trusts and their more modern counterpart open-ended investment companies (OEICs) make up most of the investment fund market. The funds are split into units and you buy some when you invest.


Unit Trusts/OEICS

The value of those units goes up and down in line with the performance of the assets in which the fund manager has invested.

The number of units that make up the fund increases and decreases as investors put money in or take it out.

When people want to cash in their investment, the fund manager will sell assets to realise the cash.

If the fund manager is doing a good job, the underlying investments should increase in value over time and when you decide to cash in your units, they will be worth more than when you bought them. This will be the profit on your investment.