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 have an experienced fund manager to watch over your investment.

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.