Unit Trust

An open ended investment fund managed by an investment professional which sells units in its portfolio of securities to investors. It is called open ended because there is no set limit to its size. Unit trusts have different strategies such as investing for growth or income or may concentrate on different geographical regions. Most unit trusts have minimum requirements of a £500 lump sum investments or monthly payments of £50 and charge initial and annual fees. In the UK a unit trust is the same as a mutual fund.

This definition is for general information purposes only