Unit Trusts and OEICs

A Unit Trust is an investment fund created by pooling money from multiple investors. When you invest in a Unit Trust, your money is used to buy units in the fund. Each unit represents a portion of the overall fund. The money from all investors is managed by a professional fund manager who invests it in a diversified portfolio of assets such as stocks, bonds, or property. The value of your investment is determined by the performance of the underlying assets. Unit Trusts are open-ended, which means that new units can be created or canceled as investors buy or sell them.

OEICs, also known as investment funds, are similar to Unit Trusts in that they pool money from multiple investors to create a fund. However, unlike Unit Trusts, OEICs are structured as companies. When you invest in an OEIC, you buy shares in the company. The money is then managed by professional fund managers who invest it in various assets to grow the fund. The value of your investment in an OEIC is determined by the performance of the underlying assets. Like Unit Trusts, OEICs are also open-ended, allowing investors to buy or sell shares at any time.