HOW WILL YOUR SAVINGS
AND INVESTMENTS BE TAXED?
A unit trust reduces your risk of investing in the stock market by pooling your savings with thousands of others, and then spreading the money across a wide range of shares or other types of investment.
OEIC’s (Open ended investment companies) are another form of collective investments which were introduced into the UK in 1997, from Europe. Open-ended means shares in the fund will be created as investors invest and cancelled as they cash in.
WE WILL TRY TO MAKE
THINGS EASY TO UNDERSTAND
THAT NORMALLY ARE NOT
Investment Trusts are companies that buy and sell shares in other companies again a form of collective investment. When you invest in an investment trust company, you become a shareholder of that company.
Your shares will rise and fall in value according to supply and demand for the shares. Unlike a Unit Trust and an OEIC, the number of shares within an investment trust is limited (there are only so many that can be bought and sold at any time).