Unit Trust

A unit trust is a collective investment fund that is priced, bought, and sold in units representing a mix of the securities held by the fund. The value of the fund's assets is reflected by the number of units issued multiplied by the price per unit. In the United Kingdom, the term unit trust is often used in a similar way to mutual fund, though it differs from mutual funds in the United States.

It is a pooled investment split into units. When you buy units, you own a small part of the basket of investments inside the fund.