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Unit Trusts >
Unit Trusts
Unit trusts are a popular investment vehicle which put the cash of many investors into a “pooled fund”. This system allows people to invest collectively, which has the benefit of spreading and reducing risk, and keeping costs to a minimum. Unit Trusts allow you to invest in the stock market with the hassle of buying individual stocks and shares, and benefit from the expertise of a fund manager. Managers of unit trusts can buy and sell within the trust without having to pay any tax. However, tax liabilities can arise on dividends and unit sales by the holder.