Unit trusts and OEICs
Introduction|
Course|
Q&As |
Recommended reading|
Quiz |
Introduction
Context
Unit trusts and OEICs are ideally suited to those who don't have the time or inclination to choose stocks themselves, or who have limited capital but want the benefits of professional fund management and diversification. For many investors, they are the main way into the stock market.
Nevertheless, you still have to choose which fund to invest in, and they are not all the same. Their charges, risk profile, and investment objectives differ - key factors in how much money ends up in your pocket.
Nevertheless, you still have to choose which fund to invest in, and they are not all the same. Their charges, risk profile, and investment objectives differ - key factors in how much money ends up in your pocket.
Prior knowledge required
None. The tutorial is designed for beginners.
Contents
- What is a unit trust?
- What is a unit?
- The trust deed and scheme particulars
- The people behind a unit trust
- Charging structure of unit trusts
- Pricing of units - FSA rules on maximum offer price
- Pricing of units - FSA rules on minimum bid price
- Pricing of units - in practice
- Pricing of units - historic and forward pricing
- OEICs - Open Ended Investment Companies
- Shares in OEICs
- OEICs - pricing
- OEICs - charges
- Taxation of unit trusts and OEICs - Introduction
- Tax treatment of dividends from equity funds
- Tax treatment of coupons from non-equity funds
- Capital Gains Tax
- Tax shelters
- Investment powers of fund managers: 'eligible investments'
- Diversification
- Fund classification: risk gradings
- Selecting a fund: Defining your objectives
- Selecting a fund: Active vs passive
- Selecting a fund: lump sum vs regular savings
- Selecting a fund: Past performance
- Where to buy unit trusts and OEICs
- Buy with or without advice?
- The mechanics of buying
- The mechanics of selling
- Share exchanges and fund switches
- Investor protection
- Conclusion
