UIT. An SEC-registered investment company which purchases a fixed, unmanaged portfolio of income-producing securities and then sells shares in the trust to investors. The major difference between a Unit investment Trust and a mutual fund is that a mutual fund is actively managed, while a unit investment trust is not managed at all. Capital gains, interest and dividend payments from the trust are passed on to shareholders at regular periods. If the trust is one that invests only in tax-free securities, then the income from the trust is also tax-free. A unit investment trust is generally considered a low-risk, low-return investment. Some investors prefer UITs to mutual funds because UITs typically incur lower annual operating expenses (since they are not buying and selling shares); however, UITs often have sales charges and entrance/exit fees. also called fixed investment trust or participating trust or unit trust.
Related information about Unit Investment Trust:
- Unit investment trust - Wikipedia, the free encyclopedia
In U.S. financial law, a unit investment trust (UIT) is an exchange-traded mutual fund offering a fixed (unmanaged) portfolio of securities having a definite life.
- Unit Investment Trusts (UITs)
May 8, 2007 ... A"unit investment trust," commonly referred to as a "UIT," is one of three basic types of investment company. The other two types are mutual ...
- Unit Investment Trust (UIT) Definition | Investopedia
UITs can be resold in the secondary market. A UIT may be either a regulated investment corporation (RIC) or a grantor trust. The former is a corporation in which ...
- Should You Invest in a Unit Investment Trust? - Bonds - About.com
First, just like a mutual fund, a unit investment trust is a collection of other investments. In the bond world, a UIT is a collection of bonds, bond funds or bond ...
- Unit Investment Trusts - Unit Trust - Investing in a Unit Trust
Units of a unit investment trust can often be bought for as little as $1,000 ($500 for an IRA). Owning a unit of the trust means you own a proportional share of all ...
- unit investment trust - The Free Dictionary
Noun, 1. unit investment trust - a regulated investment company consisting of professional managers who issue redeemable securities representing a portfolio of ...
- Unit Investment Trust | Northwestern Mutual
A Unit Investment Trust from Northwestern Mutual offers a fixed portfolio of equity and/or fixed income securities.
- Home - Unit Trusts
There is no assurance that a unit investment trust will achieve its investment ... An investment in a unit investment trust is subject to market risk, which is the ...