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Types of funds
There are various types of funds in which you can invest in at New Star. This section provides definitions and describes the differences between and the potential advantages of the following types of collective investment schemes: OEICs, unit trusts, funds of funds and funds of investment trusts.
| OEICs | SICAVs | |
|---|---|---|
|
An open-ended investment company (OEIC) is a collective investment scheme, where investors' money is pooled in one or more sub-funds to buy shares. This section describes how an OEIC works and the benefits of investing in one. |
A SICAV is a collective investment scheme common in Western Europe (especially Luxembourg), where investors’ money is pooled together in one or more funds and invested in shares and bonds, for example. | |
| Unit trusts | Funds of funds | |
|
A unit trust is a type of pooled investment, similar in many respects to a single OEIC sub-fund. In a unit trust, your money is pooled with that of other investors and used to purchase units. This section provides further explanations and describes the benefits of investing. |
As its name suggests, a fund of funds is a fund that invests only in unit trusts, OEICs and funds recognised by the Financial Services Authority. This section provides further explanations and describes the benefits of investing. | |
| Funds of investment trusts | ||
| Investment trusts, like unit trusts and OEICs, are pooled investments. There are, however, certain differences and they can sometimes be riskier. A funds of investment trusts spreads investment across a number of investment trusts. This section explains funds of investment trusts and the benefits of investing in one. |
| For PDF versions of fund factsheets, brochures, guides and more, please visit our literature library |
| Email: webdirectcontact@newstaram.com |
| Dealing Phone: 0845 608 8703 |
| Administration Phone: 0845 608 8704 |