A unit trust is a popular investment fund structure. Unit trusts are a type of mutual fund where investor money is pooled into a single managed fund which is then subdivided into units. Different investors hold a different number of units based on the size of their investment.
Unit trusts are popular because they allow for easy opening and liquidation of positions – you simply buy or sell units of the fund. Your profit (or loss) is calculated by the difference between the original purchase price and the price of the unit when you sell. This price varies depending on the success of the investment portfolio, which will follow investment principles set out in the marketing materials.
When investing in a unit trust, investors look for the past performance of the fund, and the investment mandate the manager works under. The type of assets they invest in will influence returns and how the unit trust fits into an overall investment portfolio. Unit trusts are obliged to publish their holdings on a regular basis, and the structure allows for great transparency about holdings and fees, to the benefit of investors.
ADSS offers a range of global markets for traders, with CFD opportunities in indices, commodities, forex, equities and more. We also feature tutorials, how-to guides, and weekly webinars to help you navigate the financial markets and find better trading opportunities. You can start trading and investing online by opening a live trading or demo trading account.