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Savings and Investments
Unit Trusts and Investment Trusts
A Unit Trust is a collective investment vehicle and by investing in one, you reduce risk by spreading your investment. At the same time you obtain professional investment management at low cost.
An Investment Trust is a company whose shares are quoted on the stock exchange, like those of other public limited companies. However, unlike companies involved in manufacturing or service industries, the sole activity of an Investment Trust is to invest in the shares of other companies. An Investment Trust is therefore a collective investment that enables the smaller investor to benefit from the economies of scale and access the fund management expertise of the larger institutional investors.
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