Collective Investments

OEICs and Unit Trusts are forms of collective investment, which allow individuals to participate in a large portfolio of quoted securities by pooling their money together with other investors. This gives the individual access to a much wider spread of holdings than can normally be achieved with smaller sums of money, which in turn reduces the risk. The fund is divided into units or shares, which are valued on a daily basis and reflect the underlying value of the fund. This value will fluctuate on a daily basis with market conditions.