Unit trusts, also commonly known as mutual funds, are funds managed by professional fund managers. These funds pool together cash gathered from investors, which are then invested into assets such as stocks, bonds and other securities. This allows the fund to offer investors greater diversification and affordability.
Unit trusts can be classified based on what they invest in, such as the asset classes, sectors and geography. The fund manager decides on the type of investments the fund makes and this information is reflected on the fund factsheet.