A type of collective investment. Unit trusts allow you to invest an initial lump sum, or regular contributions, or a combination of the two. The trust is divided into units; each unit is worth an equal fraction of the total assets that the trust owns. As the value of these assets increases (or decreases), so does the value of your units. You can purchase more units if you want to.
Unlike Open Ended Investment Companies and Investment Trusts, Unit Trusts may be
‘dual priced’ where those selling units get a lower price than those buying have to pay.