How Does Unit Trust Work.

STRUCTURE OF UNIT TRUST

The investors invest money in the unit trusts to gain income and capital gains. The trustee owns all the assets which the fund invests in and also ensures that the fund manager acts in accordance with the investment mandate in the trust deed. The manager, on the other hand, is responsible for the day-to-day management of the asset, and also for the distribution of income to investors. The calculation of unit trust prices is also under the purview of the manager.

Note that the fund assets are held in the name of the trustee - this separates the assets of the unit trust management company from those of the fund itself. This is to safeguard investors' interest.

That's all for now and thanks again.