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Unit Trusts


Advantages of investing in a unit trust

  • You have experts doing the hard work for you.
  • There are many unit trusts to choose from.
  • For many unit trusts, you can set up a regular savings programme and have your savings drip-fed.
  • Your resources are pooled with other investors, allowing you to make investments impossible as an individual investor.
  • It helps you to easily diversify your investments.
  • You get the benefits of greater economies of scale, such as reduced transaction costs.

Disadvantages of investing in a unit trust

  • There are costs over and above those you'd pay if you were investing directly.
  • Unit trusts may not be as liquid as some other investments.