Mike Robertson Associates Ltd, Lifestyle Financial Planners, Battle East Sussex

Unit Trusts




What are Unit Trusts?

Unit Trusts are a form of "pooled investment", also known as a "collective investment". A pooled, or collective, investment, is where a fund manager uses their professional expertise to invest in one or more asset classes on behalf of a large number of investors. With Unit Trusts, the fund manager buys shares in a variety of different companies and pools them together. The money that you place into the Unit Trust is used to buy units in the fund. The fund in a unit trust is open ended, which means that as investors buy and sell units, the number of units rises and falls.

Types of funds available in Unit Trusts

Different funds carry different risks. Every Unit Trust fund will have a specific aim. Knowing a funds investment strategy enables you to invest according to your attitude to risk. A fund that invests in large UK companies would be considered to carry a lower risk than a fund investing in smaller UK companies or emerging markets.

How is the value of my Unit Trust calculated?

The value of your Unit Trust holding is based on the number of units you hold in that particular Unit Trust Fund. The value of the fund will rise and fall in line with the underlying value of the shares held within the fund. If the share prices rise, then the value of the Unit Trust will rise, lifting the value of your holding. If the share prices drop, then the value of the Unit Trust will also fall. Depending on the shares that the Unit Trust Fund is invested in, you may receive interest distributions or dividend income from your units.

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Mike Robertson Associates Limited is an appointed representative of Lighthouse Advisory Services Limited, which is authorised and regulated by The Financial Conduct Authority. Registered in England No 4501167. Registered Office 30-34 North Street Hailsham East Sussex BN27 1DW

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Mike Robertson Associates Ltd is located in Battle, East Sussex, near Hastings, Bexhill and Eastbourne