Unit trusts are a popular investment vehicle. They are open-ended collective investments also known as OEICs (Open Ended Investment Companies) in the UK, SICAVs (Societe’ d’Investissement A Capital Variable) in Europe, and open-ended Mutual Funds in the United States.
The concept behind this is that many investors pool their funds into one “pot”. This is then managed by the experts of the Fund Management company.
This system allows investors to invest “collectively”, provides the benefit of spreading and therefore reducing the risk, whilst substantially minimising costs.
Small investors could not otherwise enjoy the advantages of wide diversification and professional management of their investment.
There is a vast choice of unit trusts. Tens of thousands, issued by thousands of Fund management companies. They cover a wide range of investment in geographical, industrial and specialist sectors and provide different combinations of capital growth and/or income.
At Financial Planning Services, our first transactions with, and visits to, the head office of some of the world’s largest and most respected mutual fund names in the United States and the United Kingdom date back to the mid-1970’s and early 1980’s.
Talk to us. We will help you identify a few unit trusts which dovetail with your specific requirements.