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| How do I decide which unit trust or OEIC to invest in? |
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You should first determine what are your investment objectives. Then you can consider which funds meet those objectives.
Each fund has a set investment objective. These objectives can be
found in the key features document for a fund. You can also get a feel
for the objectives and relevant risk level of a Unit trust or OEIC by
looking at which fund sector it is in.
Funds are classified into sectors by the Investment Management
Association (IMA) which represents the UK asset management industry.
This makes it easier to group funds according to the fund's objectives
which can also assist in assessing the general risk level of funds.
There are over 30 sectors into which the IMA categorise each UK
authorised fund. The criteria used include, income or growth focus of a
fund, the asset classes they hold and where they invest in the world.
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