By investing in collective investments ' usually a mixture of unit trusts, Oeics and investment trusts ' investors can reduce their exposure to risk, avoid paying capital gains tax and improve their investment timing
One answer to the problem of spreading risk, sheltering capital gains from tax when making switches and getting investment timing right is to invest in collective investment vehicles. The most well known of these are unit trusts ' now often converted to open-ended investment companies or Oeics managed through an Authorised Corporate Director (ACD) ' and investment trusts. These three types of vehicle all have the advantages of being free from UK tax on capital gains made within the vehicles themselves, being run by professional managers and spreading risks by investing in a range of ...
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