The value of each unit will rise or fall depending on demand in the market for the fund.
Funds can invest in almost anything – countries, energy, gold, oil, even debt.
All funds have a theme – anything from geography (European, Japanese, emerging markets), industry (green companies, utility firms, industrial businesses), types of investment (shares, corporate bonds, gilts), to the size of the company.
An FTSE 100 tracker fund invests in the UK's 100 biggest companies and therefore is much more mainstream.
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