Tesco
Personal Finance Unit Trusts and OEIC's
Tesco Personal Finance Unit Trusts and OEIC's
Tesco
Personal Finance - Unit trusts and OEICS
These bring together the cash from lots of investors and pool
this into a fund. Each investor own units in the fund - hence
the name unit trusts. With an Open Ended Investment Company
(OEIC-pronounced "oik") the investor owns shares.
OEIC's are beginning to replace unit trusts.
A
fund manager invests the cash in a wide range of company shares,
corporate bonds or gilts spreading the risks and costs of
investing. The units/shares are of equal value and can be
bought and sold at any time. Their value rises and falls depending
on how well the investments bought are doing.
For
unit trusts, OIECS and investment trusts
You are usually paid an income - at least every six months.
This is your share of the dividend income of the fund. You
can either take the money or reinvest it. However, note that
some types of investment trust shares do not pay dividends.
The main way to make money however is through capital growth,
the rise in value of your units or shares.
If
you invest in a Tesco Personal Finance unit trust, OEIC or
investment trust through an Individual Savings Account (ISA)
you don't have to pay tax. However note that whilst ISA fund
managers can reclaim tax on dividends at the moment, they
will not be able to after 5th April 2004. After that the dividends
will no longer be tax-free.
For
further information on Tesco Personal Finance Unit Trusts
and OEIC's visit the Tesco Personal Finance website.
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