Secrets of Unit Trusts

By now, you've probably heard people talking about unit trusts, and you might even have heard that they are a good investment choice. However, the name certainly isn't very self explanatory, and if you're wondering what the heck they actually are, here is a short explanation. A unit trust is basically a means for small investors to pool their money, which is then invested, by the company that administers the trust, in blue chip shares. Because blue chip shares are expensive, the average individual would probably not have adequate capital to invest in sufficient shares on their own, but with the aid of a unit trust, their collective investments can do just that. The company that manages the unit trusts does not release the shares to individual inves tors, but rather places them in an investment fund, which they administer, buying and selling in the best interests of their investors.