Gold Investment - What are Unit Trusts?

Unit trusts operate on the principal that many investors simply don't have enough money to build up their own share portfolios. Investors thus pool their funds/resources and entrust a management company (e.g. Old Mutual) to buy shares on the Johannesburg Stock Exchange (JSE) on their behalf. The shares (e.g. mining shares) bought are then placed in a portfolio and the portfolio is then divided by the management company in equal "units". Each investor then receives a certain number of "units" in the portfolio according to the amount of money he/she has entrusted to the management company. A portfolio created and managed in such a way is called a "Unit Trust" (e.g. Old Mutual Gold Fund). "Unit Trusts" can also be called "Collective Funds".

Gold unit trusts, unit trusts in the gold equity sector, offers an affordable way to invest in the shares of gold mining companies listed on the Johannesburg Stock Exchange (JSE).

Please note: Gold Investment is not planning to give advice pertaining to which gold unit trusts investors should invest in.