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TU Unit Trust

What are Unit Trusts?

Unit Trusts were first designed over 70 years ago specifically to give individual investors a simple and inexpensive method of investing in company shares. There are many individuals who have invested in just one or two shares and who feel they should invest more widely, but either do not have sufficient capital to acquire a well-spread portfolio or simply lack the time or experience to create a personal portfolio.

Unit trusts may be suitable for such people while also having considerable advantages for larger investors as well.

...all the advantages of investment and cost reductions normally only available to institutional investors

A unit trust is simply a pool of investments, managed on behalf of a large number of investors with similar objectives.

The underlying securities are held by an independent trustee (in our case, HSBC Bank plc) in order to safeguard the interests of the underlying investor.

The total fund is divided into "units" and the value of your investment is simply a proportion of the fund dependent on the number of units you hold. Thus you are able to obtain all the advantages of investment and cost reductions normally only available to institutional investors.