From the Learn Hub
Learn Hub
More glossary terms
- JOLTS (job openings and labor turnover survey)
- Earnings per share (EPS)
- Nasdaq composite
- Unit
- Value investing
Unit definition
A unit is what you buy when you invest in a fund – it’s your slice of the overall investment
What is a unit?
A unit is what you buy when you invest in a fund – it’s your slice of the overall investment. Instead of owning individual shares or bonds, you own units in a fund that itself could hold a mixture of shares, bonds, or other assets and investments.
The value of a unit goes up or down depending on how the investments inside the fund are doing. If the fund performs well, each unit becomes more valuable.
It’s a bit like buying a slice of cake – your unit is one slice, and the whole cake is the fund. The more units you have, the bigger your share of the fund’s potential returns.
Investing glossary
It's important you know
Capital at risk. All investing should be for the longer term. The value of your investments can go up and down, and you may get back less than you invest. Tax treatment depends on individual circumstances and may be subject to change in the future.
A 25% government penalty applies if you withdraw money from a Lifetime ISA for any reason other than buying your first home (up to £450,000) or for retirement, and you may get back less than you paid into your Lifetime ISA.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Payments you make into your pension won’t be accessible until the minimum pension age (currently 55, increasing to age 57 from 2028). Tax treatment depends on individual circumstances and may be subject to change in the future.