A unit trust refers to an organisation that holds a collection of investments in a range of securities, bought with public subscriptions. Because investors can easily buy and sell units in these professionally managed trusts, the risk of investing is usually considered to be lowered as they have access to many shares and/or fixed income securities for a small investment and to the expertise of the fund managers. Unit trusts have different charging structures, with varying initial, annual and exit charges. In addition, different investment strategies and objectives mean the types of funds available varies enormously, i.e. some are sector or country specific, some may be focused on growth or providing investors with an income or both.
