Glossary of terms
Unit trusts
A type of managed fund. Managed funds work by pooling money from a number of investors and then using this money to buy a variety of investments. In a unit trust, each investor owns a proportion of the total fund.
Unsecured loan
A loan which is not secured against any of the borrowers assets and hence is more risky than a secured loan. In order to compensate for this, the lender will charge a higher interest rate.
