Prudential OEIC/Unit Trust

By selecting one or more funds within the OEIC or Unit Trusts that suits your appetite for risk and return, you can design an investment portfolio that could be just right for you. There are 29 funds you can invest in, covering a range of potential returns and levels of risk. By creating your own unique combination of funds you can aim to find a mix that you think you're comfortable with.

Please remember that the value of your investment may fluctuate and is therefore not guaranteed. You may not get back the full amount of your original investment.

Many of the funds spread their investments over several assets to try to limit your exposure to the ups and downs of investing solely in stocks and shares. If the value of one sector or type of asset such as stocks and shares goes down, there are others such as bonds that can potentially provide returns. This is sometimes known as multi-asset investing, or diversification.

To read more about different types of assets and their risk levels click where to invest - considering risk and potential reward.

Decide how much you want to invest in each fund.

Invest a lump sum from £500 or get started with a direct debit from as little as £50.

Charge free withdrawals of £250 or more are allowed at any time, although please bear in mind that taking income or making withdrawals may affect the return you get back on your investment.

You can top up your existing Unit Trust or OEIC with Prudential by calling us free on 0800 072 6159 or using this top up form (the minimum lump sum is £250 and you can top up your monthly payment by multiples of £5). Please read the key features before topping up.

You can switch funds whenever you need to without charge.

It's true that putting money in shares and other assets is more risky than investing in cash, and events over 2008 and early 2009 have gone a long way to showing this. However, historically, over the medium to long term, the returns from shares have been better than cash.

According to the Office for National Statistics (Financial Statistics) Rates Shares and Deposits - Average Rates, from the launch of FTSE All-Share index in April 1962, to April 2010, shares have beaten cash in:

• 77.9% of all 5-year periods
• 91.9% of all 10-year periods

So if you're thinking about building a portfolio of savings and investments over the longer term you might consider investing a portion of your money in shares depending on your attitude to risk.

Past performance is not a reliable indicator of future performance. The value of your investment may fluctuate and is therefore not guaranteed. You may not get back the full amount of your original investment.

This is a higher risk investment than a bank or building society. In a bank or building society your money is generally secure and readily accessible. Read more about why you might consider investing in shares and not just cash.

Multi-asset investing

While most of the funds invest a share of their money in stocks and shares to try and take advantage of higher returns over the longer term the majority do not invest all of their money there. This is because by investing in other assets, such as bonds, cash and property, the funds are not solely exposed to significant price movements in any single asset. With this approach, rather like putting your eggs in several baskets, the funds aim to smooth your returns when markets are volatile.

There are some tax advantages of investing in funds through a unit trust or an OEIC.

• No capital gains tax is payable on gains made by investments held within the fund. Capital gains tax may be payable when you sell your units however, and you're required to detail this in your self assessment tax return.
• There is a 10% tax credit for all taxpayers on any income received from investments made in shares.
• Non-taxpayers can reclaim a 20% tax payable on interest income from investments made in fixed interest funds.

To find out more read investments and taxation.

Please be aware that the impact of taxation (and any tax reliefs) depends on individual circumstances. Information about tax rules is based upon our current understanding, and is liable to change in the future.

By pooling money together with other investors you can potentially boost your purchasing power. This means you're able invest in some assets that an individual investor could not invest in, or might find expensive to invest in.

These risk rating categories have been developed by Prudential to help provide an indication of the potential level of risk and reward that is attributable to a fund based on the type of assets which may be held within the fund. Other companies may use different descriptions and as such these risk rating categories should not be considered as generic to the fund management industry.

Prudential will keep the risk rating categories under regular review and as such they may be subject to change in the future. We recommend therefore that before making any fund choice in the future you ensure you understand the appropriate risk rating before making a decision.

As with other investments in stocks and shares your investment may fluctuate and is not guaranteed. You may not get back the full amount of your original investment. If any income or withdrawals taken are more than any overall growth achieved the value of your original investment will reduce below the level of original capital invested.

The Prudential (Invesco Perpetual) Managed Trust, Prudential (Newton) Managed Trust and Prudential (Newton) Higher Income Trust are Prudential funds, managed on its behalf by the fund management group stated. They should not be confused with the same or similar named funds or unit trusts offered independently by these fund management groups.

• Fact sheet
• Managers' Final Report
• Investment Fund Annual Report
• PIF Aggregate
• Managers' Interim Report

Full list of funds

Minimal Risk
Prudential Cash Haven Trust (Unit Trust only) CLOSED
Prudential Maximum Income Trust (Unit Trust only) CLOSED

Lower to Medium Risk
Prudential Cautious Managed Growth Fund
Prudential Managed Defensive Fund
Prudential Distribution Trust
Prudential Corporate Bond Trust
Prudential Cautious Growth Portfolio
Prudential Cautious Portfolio
Prudential Defensive Portfolio

Medium Risk
Prudential Managed Trust
Prudential Global Balanced Trust
Prudential Growth Trust
Prudential Managed Funds Tracker Trust
Prudential Balanced Portfolio

Medium to Higher Risk
Prudential International Growth Trust
Prudential Global Growth Trust
Prudential (Invesco Perpetual) Managed Trust
Prudential (Newton) Managed Trust
Prudential Adventurous Portfolio

Higher Risk
Prudential European Index Tracker Trust
Prudential European Trust
Prudential North American Trust
Prudential UK Index Tracker Trust
Prudential UK Growth Trust
Prudential Equity Income Trust
Prudential Japanese Trust
Prudential (Newton) Higher Income Trust
Prudential Ethical Trust
Prudential Small Companies Trust
Prudential Pacific Markets Trust

• Fact sheet
• Managers' Report
• Investment Fund Annual Report
• PIF Aggregate Interim
• Managers' Interim Report