Unit trusts are designed to provide a straightforward, inexpensive and convenient way into the stockmarket. They can be bought direct from the Investment management groups or from an independent financial adviser or from a stockbroker . Unit Trusts offer investors the potential to achieve capital gains which exceed what is usually possible in the building society , but in choosing this option entails taking a degree of added risk. Some of the risk may however have been minimised because when you put your money into a unit trust, you are effectively buying a small quantity of shares in several companies. Which ones precisely will be decided by the fund manager.
Regular savings has the benefit of pound cost averaging .
Private investors invariably pay charges when they buy a unit trust. A minority of funds have no initial charges, but slightly higher annual charges. Unit Trusts are often mentioned alongside Investment Trusts . There are some 1800 unit trusts available on the market. You may benefit from getting professional help in making your selection.