OEICS/Unit Trusts
Collectives
To spread your risk you can invest in a pool of different companies shares instead of just one company share. Unit Trusts and Investment Trusts give you this choice. There can be tax advantages if you need income by using your annual Capital Gains Tax Allowance to let you take some of the growth tax free. Many providers will allow you to monitor your own portfolio on line, so that you can switch funds as you wish and keep an eye how your funds are progressing.
Unit Trusts
A type of collective in which you buy a small segment or unit of the overall fund.
Investment Trusts
A collective which is a company listed on the stock exchange and whose business is investing in other companies.