Times Money gives you the lowdown on unit trusts and how they work
What is a unit trust?
It is a collective investment, meaning that a number of people pool their money in a fund that then buys and sells shares, or bonds, on their behalf. The idea is that by pooling their money and investing in a range of shares or bonds, investors spread the risk. Some unit trusts are also known as open-ended investment companies (Oeics), but they operate in the same way as unit trusts.
How do they work?
The unit trust fund is divided into units, each of which represents a tiny share of the overall portfolio. Each day