Unit Trusts & OEICs

Unit trusts or OEICs (Open Ended Investment Company) are similar to investment trusts in that the investors' money is pooled, but the size of the fund of a unit trust or OEIC can grow or shrink as the investors add and withdraw money.

Difference between Unit Trust and OEIC

When you invest in a Unit Trust you buy a unit, i.e. a segment of the total fund. With an OEIC you would be issued shares.

Am I taxed on any capital gains?

Yes depending on your taxation situation you may be subject to capital gains tax and also income tax. However it is possible to invest in an unit trust or OEIC via an ISA to take advantage of your yearly tax efficient allowance.

Summary of Unit Trusts & OEICs

- Professionally managed by experts trained to anticipate trends and opportunities

- Lump sum investment or monthly savings option

- Tax efficient benefits if invested in via an ISA

- Open-ended - size of fund depends on supply and demand

- Potential for better returns than a bank or building society account and to beat inflation

- Price of a unit trust reflects the value of the investments in the fund

- Money pooled therefore risk spread and access to a wider range of stocks and shares

- Different aims and objectives - e.g. one trust's aims may be to provide an income, yet another's may be to generate as much capital growth as possible

Invest in an Unit Trust Online

Take advantage of our discounted funds when you invest online with us. You can invest in a unit trust via an ISA and make use of your tax efficient allowance. We have developed a range of portfolios to suit your risk profile or you can choose your own funds from all of those available on our platform.