Unit trusts
Invest in the worlds stock markets
A unit trust enables investors to buy units of a larger pool of units. The price you pay for each unit reflects the
average price of the underlying shares. Your investment can be as little as £25 a month. Your investment will join thousands
of other investors investments to create a fund of investments. Therefore, for a relatively low investment, you all share in the
investment risk.
What happens if you want to sell
Simple, you sell. Simply instruct your provider to sell and you will receive the cash equivalent. However, unit trusts
are very similar to their modern day version, the open ended investment company,
but differ signifacanlty when it comes to pricing. They work on what is called a spread. You have a bid price and a offer price.
You buy the units at the higher offer price and sell at the lower bid price. The difference between the two prices is the spread.
So, when you do decide to sell make sure the bid price quoted is higher that the offer price you bought at otherwise you will
crystallise a loss.
What areas do unit trust invest in
Many, such as property, asian shares, north american shares, UK shares, growth companies, etc. Each unit trust carries
its own investment risks risks
so it is important you seek advice before making any investment.