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Unit trust information


A unit trust is a form of collective investment constituted under a trust deed. A unit trust pools investors' money into a single fund, which is managed by a fund manager. Unit trusts offer access to a wide range of investments, and depending on the trust, it may invest in securities such as shares, bonds, gilts,[1] and also properties, mortgage and cash equivalents.[2] Those investing in the trust own "units", whose price is called the "net asset value" (NAV). The number of these units is not fixed and when more is invested in a unit trust (by investors opening accounts or adding to their accounts), more units are created.[1]

In addition to the UK, trusts are found in Fiji, Ireland, the Isle of Man, Guernsey, Jersey, New Zealand, Australia, Kenya, Uganda, Tanzania, Namibia, South Africa, Singapore,[3] Malaysia and Zimbabwe.

  1. ^ a b "What is a unit trust?". money.co.uk. Retrieved 11 October 2017.
  2. ^ "What is a 'Unit Trust - UT'". Investopedia. Retrieved 12 October 2017.
  3. ^ Lee, Boon Keng and Ong, Andy. Personal Financial Planning in Singapore. INS communications PTE LTD, 1997. p. 120, ISBN 981-00-9422-1.

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