UNIT TRUST
A form of pooled investment that lets you combine the money you pay into the fund with that of thousands of other investors. The money may be split between a number of different assets (such as shares, bonds and/or cash-based investments) or different companies (in the case of shares and bonds). Unit trusts have a complicated pricing structure and so many fund management companies sell OEICS, or open-ended investment companies, instead.
UNSECURED LOAN
A personal or bank loan that is not secured on the value of your property. The interest rates tend to be higher than for secured loans because the risk to the lender is greater. It's possible for unsecured loans to be converted into secured debts if you get into arrears, via a charging order.
UNSECURED PENSION
A way of taking income from your pension fund (if it's a personal, stakeholder or money purchase pension) between retirement age and 75. The advantage is that you can leave the rest of your pension fund invested; the disadvantage is that your fund is at risk of losing some of its value if stock markets fall.
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