Definitions for "Unit Linked"
A life assurance, investment or savings policy, under which the policyholder invests premiums into units in a unit trust-type investment. Performance therefore, is dependent directly on current investment market conditions.
Your contributions buy units in the selected fund. The value of the units depends on the underlying assets in the fund. Consequently the value of your fund can go down or up. There is a wide range of funds to choose from: some are relatively low risk and others can be very speculative.   back
Investment vehicles in which the monies of numerous investors are pooled together and the entire pool used to purchase assets, i.e. equities, bonds, property, cash etc. depending on the particular fund. Each investor share in this pool is represented by a certain number of units. Unit prices are struck for the fund and reflect the value at that time of the underlying assets. The value of each investor's holding at a given point in time is determined by the number of units they hold multiplied by the prevailing unit prices.