A unit trust is a fund of stock market investments and fixed interest securities divided into equal portions called units.  They provide a wide range of holdings in different securities and provide more diversification than could be obtained by buying shares direct with the same amount.  Professional management provides the added potential for improved returns and takes any administrative burden from you.

Growth within unit trust funds is free of capital gains tax and when an encashment is paid, the investor can make use of their annual exemption. With careful planning, capital gains tax can often be avoided entirely.