Questions and Answers
Unit trusts explained
Virgin Bond and Gilt Fund - Earn a steady return with low risk to your capital
What is a unit trust?
Unit trusts let you pool your money with thousands of other investors and spread it across a larger number of investments. They are a simple and easy way to take advantage of the growth potential offered by the stock market, without you having to spend time deciding what to buy and sell on a regular basis, with all the administration and costs that entails.
Are unit trusts right for me?
Although unit trusts do not offer the same tax advantages as ISAs, they allow you to invest as much as you like. So once you have used up your ISA allowance for the tax year, you can invest even more in a unit trust.
If you are thinking of investing money in stocks and shares through a unit trust, we recommend you only invest money you can afford to save for at least five years, to increase your chances of a good return.
Remember, most stock market investments are considered medium to high risk and there is no guarantee you will get back the full amount you invest. If you are not comfortable at the thought that your savings might go down as well as up in value, the stock market probably is not right for you.
Can you help me decide which is right for me?
We cannot give you financial advice, but if you have any questions, please call us on 08456 10 20 20. Our lines are open 8am - 9pm Monday to Friday and 9am to 6pm on Saturdays. If you need advice we can put you in touch with an independent financial advice helpline.
Is there a Simplified Prospectus for the Virgin Unit Trust?
To see the Simplifed Prospectus for the investment funds in a Virgin Unit Trust click on the link below.
Virgin Unit Trust Simplified Prospectus
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Alternatively, you can call 08456 10 20 20 or email info@virginmoney.com to have a copy of the Simplified Prospectus sent to you.
How unit trusts work
What are the charges?
Our funds have no initial charges or bid offer spread, so whether you are buying or selling units the price is the same.
Both the FTSE All-Share Tracker Fund and the Bond and Gilt Fund have an annual management fee of 1% a year with no other charges.
The Virgin Climate Change Fund has an annual management fee of 1.75%. There may also be a 20% performance related fee, which we only earn if we outperform agreed benchmarks.
How do I check how my savings are doing?
We will send you a full statement twice a year to let you know how your savings are doing. You can also call us, or you can check out our website at any time for the latest valuation.
Is it easy to take money out?
Yes. You can withdraw your money over the phone or the internet whenever you need it. Your cheque should normally arrive within a few working days.
Am I tied to rigid payments?
No – you can stop, start, or change your payments at any time. You can withdraw your money whenever you need to without any penalties. You can also switch some or all of your investment between our different funds any time you like, free of charge.
Bond and Gilt fund
What is the performance on your Bond and Gilt Fund like so far?
Customers growing their savings in our bond and gilt fund since 31 October 1995 have enjoyed an average return of 4.80% a year, turning a £5,000 investment into £9,597.
Source: Morningstar Workstation, 31/10/1995 - 30/09/2009, buying to selling unit prices, basic rate taxpayer.
| This table shows the annual return in the last five years | ||||
|---|---|---|---|---|
| 30/09/2004 to 30/09/2005 | 30/09/2005 to 30/09/2006 | 30/09/2006 to 30/09/2007 | 30/09/2007 to 30/09/2008 | 30/09/2008 to 30/09/2009 |
| 7.0% | 0.4% | -1.7% | -0.3% | 7.8% |
Source: Morningstar Workstation, year on year 30/06/2004 - 30/09/2009, buying to selling unit prices, basic rate tax with income reinvested
Remember, with bonds and gilts the value of your fund and the interest that gets reinvested can go down as well as up on a daily basis, with no guarantees you'll get back the full amount you invest. To maximise your chances of a good return you should be looking to invest for at least five years.
It's also worth remembering that the past performance of an investment isn't always a guide to how well it may do in the future.
Where can I get details of the latest yield?
If you'd like to know the most up to date yield please call us on 08456 10 20 30. (Max call charge from a BT landline is 3.9p per minute. Calls from other networks may vary.)
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