The M&G Unit Trust

M&G launched the first unit trust in 1931. They are a simple way to invest in stocks and shares and they relieve you of the potential problems associated with managing your own portfolio.

A large number of investors pool their money into a unit trust fund (or its modern day version an Open-Ended Investment Company (OEIC)), which is spread across a wide number of shares, bonds or other investments (such as cash or property). This means that you can share the advantages of a large spread of investments, even though your investment maybe small, which helps to reduce your exposure to risk. You also benefit from the expertise of M&G’s highly rated fund managers.

What are the benefits?

The advantages of investing in a unit trust or OEIC rather than directly in the stockmarket are that:

Your dealing costs are lower; and
You generally benefit from lower risk because your investment is spread across many companies instead of being concentrated on just a few.

What is the difference between a unit trust and an OEIC?

Both unit trusts and OEICs are open-ended investments, so more shares or units can be issued or cancelled at any stage. However,

Unit trusts issue units and OEICs issue shares.
Unit trusts have two prices, a bid price for selling and an offer price for buying; OEICs have one price, called the single price which is used when you buy and sell.
Unit trusts and OEICs are overseen by an independent body; for unit trusts this is called the Trustee, for OEICs it is the Depositary.

Find out what funds are available in The M&G Unit Trust

I just want to

Next steps: Fund information; How to invest; Current discount offers; Contact us

Download: OEIC and unit trust application form (including Key Features) (3 MB); You will require Adobe Acrobat to view the pdfs contained within this page.

Issued by M&G Securities Limited and M&G Financial Services Limited which are subsidiaries of M&G Limited. M&G Limited is incorporated and registered in England. Registered Office: Laurence Pountney Hill, London, EC4R 0HH. Registered in England No. 1048359. Registered for VAT, number GB235 3237 81. Both M&G Securities Limited and M&G Financial Services Limited are authorised and regulated by the Financial Services Authority and provide ISAs and other investments. M&G Securities Limited is registered on the FSA's register, No. 122057 (www.fsa.gov.uk/register). Registered Office Laurence Pountney Hill, London, EC4R 0HH. Registered in England No. 90776. M&G Financial Services Limited is registered on the FSA's register, No. 122058 (www.fsa.gov.uk/register). Registered Office Laurence Pountney Hill, London, EC4R 0HH. Registered in England No. 923891. Both companies are registered for VAT, number GB235 3237 81.