Unit investment trusts (UITs) are similar like mutual funds in that they pool investors'' capital together to buy securities (stocks and bonds). Unlike mutual funds, though, UITs have a fixed portfolio (i.e. securities are not traded) and are for a determined length of time. Because the securities that comprise the portfolio are fixed, UITs do not require management by a board of directors.
A unit investment trust, also known as Defined Portfolio, is an investment in a fixed, fully invested portfolio of securities with a designated maturity date.
An investment company that offers a fixed, unmanaged portfolio, generally of stocks and bonds, as redeemable "units" to investors for a specific period of time.
A unit investment trust, also known as Defined Portfolio, is an investment in a fixed, fully invested portfolio of securities with a designated maturity date.
An investment company that offers a fixed, unmanaged portfolio, generally of stocks and bonds, as redeemable "units" to investors for a specific period of time.
