A unit trust is an investment pool where your money will be "pooled" together with that of other investors in order to buy a portfolio of shares. (This process reduces the risk that you might have been exposed to had you invested solely in a single company). In simplistic terms, as the value of the underlying portfolio rises, so too does the value of the units you hold. Unit trusts are open ended funds which mean that there is no finite number of units in the trust (unlike an investment trust which has a finite number of shares). As more investors join, more units can be created. Should you wish to leave the scheme, the manager is under obligation to buy back your units.

OEICs are "Open-ended Investment Companies", introduced to the UK in 1997. Like unit trusts, OEICs are open ended companies but with structures somewhere between an investment trust and a unit trust. OEICs trade shares (as opposed to units), the total value of which reflects the value of the assets that the fund owns. In recent times, Unit trusts have chosen to convert to OEICs, a form of pooled investment that are more common in Europe.

Bonds are a method of investing money for the medium to long term. They are named so because you are "bound" to retain your investment for a certain period (eg. 5 years), failing to do so meaning that you may suffer penalties. One reason for the "bond" is that the fund managers will recuperate their costs over that period, rather than making a larger up front charge.

Ultimately, there are many savings plan providers with thousands of products to choose from. All of the advisers recommended by ifasw.co.uk have a great deal of experience in matching a client's circumstances and needs to the most appropriate policy or portfolio. Remember, if you have any questions about savings and investments, these advisers operate on a strict no obligation policy so don't be afraid to ask. If you would like to speak to an adviser, then remember that ifasw.co.uk can help - Just ask us by clicking here!