Unit trust funds help to diversify investments because they typically contain a range of different investments. This means that investors benefit from having exposure to a variety of different asset classes, sectors, and companies.
This helps to spread the risk across a wider range of investments, reducing the risk of losses should one of the investments not perform as expected. Unit trust funds also allow investors to access a range of investments with a single purchase.
This makes it easier to diversify investments without having to purchase multiple financial products.