P567 ORACLE 567 Sun 7 Aug S4C 2041:11  3/8  Unit trusts or   investment trusts?  Investment trusts are not really trusts at all but are companies quoted on the Stock Exchange. You buy shares in the company which makes its money by investing in other companies. Unlike unit trusts, they can borrow money and so invest in more shares.This facility (gearing) means that they run higher risks than unit trusts, but can also offer greater rewards. Investors are shareholders with rights to dividends and to vote at the AGM. Like unit trusts, the big advantage is that it spreads your risk across a wide portfolio of investments. more > Your Money guide 560 Holidays 580 Tourist Rates Holidays Adverts City
P567 ORACLE 567 Sun 7 Aug S4C 2040:01  0/8   Unit trusts or   investment trusts?  by Maggie Scammell Nearly a year on from the battering of last October's stock market crash, industry experts are starting to tip unit trusts again. But are they better than investment trusts and just what is the difference between the two? Our long-term table shows investment trusts performing with more stamina. But with so many people, including a lot of Your Money readers, getting their fingers burned last year, is it worth investing in either? Read on... more follows > Your Money guide 560 Holidays 580 SHAREDEALING SERVICE - SEE PAGE 577 Tourist Rates Holidays Adverts City
P567 ORACLE 567 Sun 7 Aug S4C 2000:05  Unit trusts or   investment trusts?  W—at are unit trusts? They are a pool of different shares held by trustees. Investors buy "units" in the trust and the price of each unit reflects the value of the underlying investments. They carry less risk than most stock market dealings bdcause the money is spread over a range of shares. Returns come as yield the annual income from the shares - and capital growth any increase in the value of Trusts can only invest in shares and government stocks. Minimum investment: £10-50 a lonth or £200-500 lump sum. > Your Money index 560 Holi——8s 580 Tourist Rates Holidays Adverts City
P567 ORACLE 567 Sun 7 Aug S4C 2040:01  2/8   Unit trusts or   investment trusts?  What are unit trusts? They are a pool of different shares held by trustees. Investors buy "units" in the trust and the price of each unit reflects the value of the underlying investments. They carry less risk than most stock market dealings because the money is spread over a range of shares. Returns come as yield the annual income from the shares - and capital growth - any increase in the value of investments. Trusts can only invest in shares and government stocks. Minimum investment: £10-50 a month or £200-500 lump sum. > Your Money index 560 Holidays 580 Tourist Rates Holidays Adverts City
P567 ORACLE 567 Sun 7 Aug S4C 2000:00  4/8  Unit trusts or   investment trusts?  Investment trusts You calculate the value of investment trusts by looking at two figures: market value and Net Asset Value (NAV). Market value is the price you pay for shares. NAV is the value of the underlying investments. If market value is less than NAV, as is usual, the share price is at a discount. This benefits shareholders eg £100 worth of shares could buy £125 worth of assets. You would then get dividends from assets worth more than the shares you bought. more > Your Money guide 560 Holidays 580 Tourist Rates Holidays Adverts City
P567 ORACLE 567 Sun 7 Aug S4C 2000:10  5/8  Unit trusts or   investment trusts?  * Prices, fees and charges Investment trusts look the cheaper of the two types of trust. Start up costs are not much different but then lower management fees come into their own. Unit trusts: an initial fee of 5-6% plus annual management fee of 1 1.5% of asset value. Commission costs are covered by the difference between the buying price ("offer") and the selling price (bcbd") - about 6-7%. Investment trusts: management fees are lighter at 0.5%. No initial fee but expect to pay commission of about £10- £15 per transaction plus VAT and stamp duty. performance compared > Your Money guide 560 Holidays 580 Tourist Rates Holidays Adverts City
P567 ORACLE 567 Sun 7 Aug S4C 2000:03  6/8  Unit trusts or   investment trusts?  * How £100 fared, based on average performances to June 30, 1988. 1 year 5 years 10 years }###################################### Retail £104.32 £125.48 £214.08 Price Index --------------------------------------- Building £105.71 £145.72 £235.60 society --------------------------------------- Unit £89.26 £210.65 £477.06 Trusts --------------------------------------- Investment £85.48 £242.81 £658.79 Trusts }###################################### * Source Micropal more > Your Money guide 560 Holidays 580 Tourist Rates Holi——xs Adverts City
P567 ORACLE 567 Sun 7 Aug S4C 0010:00  6/8  Unit trusts or   investment trusts  * How £100 fared, b—sed on average performances to June 30, 1988. 1 year 5 years 10 years #######]#########################O##O# Retail £104.32 £025.48 £2  Price Index -------------------------------- ---- - society ----------------------------------- - Trusts --------------------------------- ---- Trusts --------------------------------------- * Source Micropal more > Your Money guide 560 Holi——ys 580 Tourist Rates Holidays Adverts City
P567 ORACLE 567 Sun 7 Aug S4C 2012:01  7/8  Unit trusts or   investment trusts?  Over the last year the building society was the best place to be, reflecting last October's stock market crash. Over five-to-10 years investment trusts come out the clear winner, well above unit trusts and btilding societies. Yet unit trusts are far more popular with small investors. The Assocation of Investment Trusts believe it's largely because financial intermediaries get commission from unit trusts but not from investment trusts or other products like National Savings or gilts. more follows > Your Money guide 560 Holidays 580 88/89 Tax Tourist Rates Holid—ys City
P567 ORACLE 567 Sun 7 Aug S4C 2053:11  8/8  Unit trusts or  investment trusts?  Both offer a way of investing on the stock market with advantages of spread of risk and professional management. Investment trusts have the better long term performance on average; unit trusts offer a much wider choice, there being far more of them. In a still unstable market the best advice is probably that Which? gave way before the crash: don't invest money you can't afford to lose. Contact: Assoc. of Investment Trust Cos at Park House (6th flr), Finsbury Circus, London EC2M 7JJ. The Unit Trust Assoc is at the sclf place. more > Your Money guide 560 Tax data 565