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

ESG investing

ESG is a hot topic right now for investors. Understand what ESG investing is all about and how you can use it to diversify your portfolio.

Over-The-Counter (OTC)

A security that is sold outside of an exchange.

Value Investing

The art of buying shares which trade below their value, according to the analysis of the value investor.

Growth stocks

These are stocks in companies that are considered to be “growing”. These companies may be delivering new products and services, or entering new markets.

Gross Margin

The difference between a company's revenue and the cost to produce its goods/services, divided by revenue.

Global Investment Performance Standards (GIPS)

A set of standards which investors use to present their investment results.

Key Information Document (KID)

A document issued by an investment fund to help investors determine if it's the right fund for them.

Forward pricing

Mutual funds are traded on a forward pricing basis, meaning the price you see will be different to the price you may trade at.

Money laundering

A method of moving money obtained illicitly through the financial system so it can be used legally.

Unit Trusts