Unit trust

Common types of investments undertaken by unit trusts are properties, securities, mortgages and cash equivalents. A unit trust is a type of collective investment packaged under a trust deed. Unit trusts provide access to a vast range of securities. The underlying value of the assets in a unit trust portfolio is directly stated by the number of units issued multiplied by the price per unit.

Unit trust

What is a unit trust fund and how does it work? Understanding the basics of a unit trust. Morningstar 10 October, 8: You can invest in a unit trust fund through financial services providers such as a broker; an Investment Management Company or in some cases through your bank.

A unit trust fund is a pooled resource, which means that it allows a group of investors to combine their cash and invest it. Think of it like going in on a group gift. Taken altogether, those investments are called the fund's assets. So how does it work? Take the following example: While you as an individual invest in a unit trust fund, the fund itself is run by a fund manager, whose aim is to grow the overall value of unit trust fund.

The fund manager does this by investing the fund's assets, usually by buying stocks, bonds, or a combination of these two securities which are listed on the Stock Exchange. Some unit trust funds can buy more complicated security types. These stocks or bonds are often referred to as a fund's "holdings" and all of a fund's holdings together are its "portfolio.

For example, a small-company stock fund invests in the stocks of small companies.

Unit Trust (UT)

What you get as an investor or shareholder is a portion of that portfolio. Regardless of how much or how little you invest, your shares are the portfolio in miniature.

A R investment in that fund means that you own about R What are the benefits? Don't demand large up-front investments; you can make a once off lump sum investment or you can choose to invest a small amount on a monthly basis Easy to buy and sell Well regulated What are the drawbacks?

There are now more unit trusts in the world than there are stocks. Choosing a unit trust can be overwhelming when faced with so much choice Not all unit trusts are created equal Not all money managers are able to produce good returns for their investors Some unit trusts can charge too much money Unit trusts invest in a wide range of securities with different risk profiles Not as liquid as other types of investments.

Unit trusts usually take at least a day to liquidate.Growth and Income Fund The Growth & Income Fund is a great way to invest for the long term.

Unit trust

A unit investment trust is generally considered a low-risk, low-return investment. Some investors prefer Unit Trusts to mutual funds because Unit Trusts typically incur lower annual operating expenses (since they are not buying and selling shares); however, Unit .

*Password is case sensitive. ABOUT SSL CERTIFICATES. Online Registration. *Password is case sensitive. ABOUT SSL CERTIFICATES. Online Registration. BREAKING DOWN 'Unit Trust - UT' A unit trust's success depends on the expertise and experience of the company that manages it.

What is a unit trust fund and how does it work? | Morningstar

Common types of investments undertaken by unit trusts are properties, securities, mortgages and cash equivalents. Simply put, a unit trust fund is a way for you to invest your money.

You can invest in a unit trust fund through financial services providers such as a broker; an Investment Management Company or in some cases through your bank.

Unit trust - Wikipedia