Lecture 2 (15). Chapter 2: Unit Trusts vs. ETFs vs. AMETFs: the Structural Differences That Actually Matter

All three of these are legally the same underlying thing: a collective investment scheme, regulated under the Collective Investment Schemes Control Act (CISCA) and overseen by the Financial Sector Conduct Authority (FSCA). The differences that matter to you are entirely about how you buy and sell, not the fundamental safety of the wrapper.

Unit Trusts: The Original, Direct-From-Manager Route

You buy units directly from the management company, or through a "LISP" (Linked Investment Service Provider) that gives you access to many managers' funds in one account. No stockbroker required. Pricing happens once a day, calculated from the fund's Net Asset Value (NAV) after market close. So you always transact at the fund's actual underlying value, no more, no less.