unit trust sectors
At the beginning of 2008, there was over £3 trillion
invested in over 2,000 unit trusts and Oeics, divided into
over 30 investment sectors, according to the Investment Management
Association.
These 30-odd sectors reflect the type of investment (asset
class) the fund is invested in (bonds, cash, equities, property and
so on); whether the fund is designed to provide income or growth;
and/or the geographical region where the fund invests.
The type of fund you choose should reflect your attitude to
risk, time horizon and your financial needs. So before investing
directly, or seeking advice from an independent financial adviser,
decide what your investment goals are and your time horizon for
investment.
For instance, do you want income or growth, a long or short term
investment, are you saving for yourself or for someone else, such
as a child?
Above all, can you afford to invest? It is generally
advisable to pay off debt before investing in bonds and shares as
the cost of your debt may well exceed the returns on your
investment, net of charges.
It is also advisable to spread your risk by investing across a
range of different asset classes, fund managers, investment styles
and geographical regions, rather than placing all your money in one
type of investment.