Collective Investments

If money were chocolate, then collective investments would be selection boxes. There are many types to choose from, depending on your risk appetite, your preferences and what you fancy investing in.



How It Works

The idea behind collective investments is you pool your money together with others to buy a portfolio of stocks and shares. The advantages for inexperienced investors are clear; instead of focusing on one company, your fund buys a larger variety of investments. The result - your money is not exposed to too much risk.

Collective funds, known as unit or investment trusts, take millions, sometimes billions of pounds and use it to buy a basket of shares. Only the very wealthy could ever diversify their investment portfolio as much. Generally speaking, the more investors in a fund, the larger the variety of investments.

What Do They Invest In?
  • Sectors - such a retail or technology
  • Natural Resources - such a oil and gas
  • Commodities - such as gold or sugar
  • Loans to companies or governments

Some apportion the investment by region, such a UK growth funds, Europe and Emerging Markets. Each collective investment is different and some will suit your needs better than others.

How Do I Choose?

The main types of collective investment are:

  • Unit Trusts - which invest in a selection of shares and other assets to create a portfolio. This is divided into individual units which can be bought and sold by investors.
  • Open Ended Investment Companies (OEIC) - these are also pooled investments but as an investor, you will be issued shares instead of units. A single price is normally quoted for buying and selling.
  • Investment Trusts - companies quoted on the stock market, which buy and sell other companies' shares. Investors can earn dividends from the shares, as well as revenues.
  • Exchange Traded Funds (ETF) - private investors can buy into an entire stock market index as easily as buying shares.



Our Services

To feel confident that you are investing in a collective investment that is right for you and to understand the costs involved, contact us for advice. Based upon your goals and individual circumstances, we can compare funds sourcing a selection that will suit your needs better than others.

Contact Us