How unit trusts work
Unit trusts explained simply
Most people invest in stocks and shares through managed funds. In these, investment experts analyse and decide on companies to invest in on behalf of a large number of customers like you. Your money is pooled together with other customers' money into a fund, and the professionals manage it on your behalf.
The Co-operative Investments offers managed funds in the form of unit trusts. Investors buy ‘units' in the trusts and our fund managers invest the money to achieve each fund's particular objectives.
Some unit trust benefits
- For our UK funds, you can choose whether to take an income or reinvest income to enhance the growth of your capital
- There is no maximum limit to the amount you can invest
- Can be held in a tax-efficient Individual Savings Account (ISA)
To find out more about the unit trusts we offer read 'Our unit trust and ISAs' guide.
The Association of British Insurers have produced a guide to the taxation of Life Assurance Bonds and Unit Trusts which you may find of interest.
Download the guide. (opens as PDF 0.1Mb)
