What is 'Unit Trusts'? | Freetrade Dictionary

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

UK Treasury bill

A debt instrument issued by the UK government with a maturity of less than one year.

W-8BEN Form

Non-US individuals and businesses may have to file this form for the Internal Revenue Service (IRS), the US tax authority.

NYSE

The world's largest stock exchange. Wall St HQ.

Nominal amount

The face value of a gilt. It represents the amount that will be repaid to the holder at maturity and is also used to calculate the dividend or coupon payment.

Retail Prices Index (RPI)

An index published each month by the Office for National Statistics, which measures the level of retail prices in the UK. Cash flows on all index-linked gilts are linked to the RPI.

NASDAQ

A US stock exchange specialising in the shares of technology companies.

Spot Rate

The currency exchange rate a bank quotes, valid with immediate effect.

Geometric Mean Return

A way of calculating compound returns on an investment or savings over a set period of time.

Interest Rate

The amount a lender charges for lending your money, or a borrower pays you for borrowing your money.

Unit Trusts