Funds are usually designed to either increase the value of an investment or to pay a regular income.
Invest for growth or income
When you invest in a fund you buy units - this is similar to when you buy shares in a company. There are two types of unit you can buy; accumulation units which reinvest any income earned from investments held, and distribution units which pay out the income.
So if you’re just looking for growth from your investment, it’s best to choose accumulation units. If you’re looking to be paid a regular income, distribution units will be the answer.
To make it easy for you we have simplified the application process for our ready-made funds and track the market funds.
- If you select the ready-made growth funds or any of the track the market funds, you will automatically be invested in accumulation units.
- If you choose to invest in a ready-made income fund, you will automatically be invested in distribution units.
But we don’t want to restrict where you invest, so if you would prefer to choose your unit type, you can by using the full range of funds.