Investment trusts - Investment trusts are a type of investment fund. They are ‘closed-ended’, meaning a fixed number of shares are issued, which can then be bought and sold on the stock market.
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Click here for our guide to different types of funds.
Passive funds/trackers - Passive funds track a market, meaning they aim to perform in line with the market average. They are generally run by a computer and are lower risk than active funds (with a lower fee).
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Trading fees - These are the fees associated with buying or selling stocks and shares.
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Unit trusts - Unit trusts are the most popular type of investment fund. A fund manager buys assets for the fund, which are pooled together. The fund is then broken down into units, which are sold to investors. These types of funds are ‘open-ended’, which means the fund manager can create additional units when required.
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Click here for our guide to different types of investment funds.