Unit Trusts

Unit trusts are a popular investment vehicle today, they are 'open ended collective investments' which put the cash of many investors into one 'pooled fund'. This system allows investors to invest "collectively" which has the benefits of spreading and reducing risk whilst keeping costs under control. Unit trusts allow you to invest in the stock market but enable you to spread your risk and benefit from expert investment management.

There are many unit trusts to choose from across a wide range of investment sectors. The managers of the trusts can buy and sell within the trust without having any liability to capital gains tax. However for the investor there is a potential liability to Capital Gains Tax on encashment or fund switches, and an Income Tax liability can arise on income distributions. However the exact tax treatment will be based on individual circumstances.

THE VALUE OF INVESTMENTS AND INCOME FROM THEM MAY GO DOWN. YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED.