What are 'unit trusts'? Definition & meaning

A collective investment scheme the investors pay money into in exchange for units. The money is invested in a diversified portfolio of assets.

More terms

Clean price

The quoted price of a gilt, which excludes accrued interest

index-linked gilts

Gilts where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI). This is as opposed to a conventional gilt, where the dividends and principal repayments are fixed in nominal terms.

Bond

Learn what a bond is

Fundamentals

The data or information that is likely to impact a company's stock price.

Over-The-Counter (OTC)

A security that is sold outside of an exchange.

Accrued interest

The interest earned on a gilt since the last dividend date. When buying a gilt, the buyer pays the accrued interest at the time of a transaction to the seller in addition to the clean price of the gilt

Holding Period Return

The amount of money generated by an asset during the time that it was held by an investor..

Internal Rate of Return (IRR)

A means of calculating the potential future return on an investment.

After-hours trading

Trading outside of a stock exchange's opening hours.

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Unit Trusts