One way of pooling investors’ assets into a fund.
Context: There are various forms of vehicle in which assets may be pooled: in the UK unit trusts have been the most common for many years, although investment trusts are probably the oldest form. Unit trusts are changing their form (see ICVC /OEIC ). Life funds may have various technical advantages (i.e. no VAT on investment management fees) and in some circumstances, some tax planning advantages for private investors. It is worth bearing in mind, though, that, when you put money in a life fund, you give up your ownership of that money: it is no longer yours, either legally or beneficially. You have a set of contractual rights, though, to the value of the “units” stated as being yours.