How diversified are the holdings in a UIT?
A UIT diversifies its holdings by purchasing a variety of stocks or bonds. The trusts diversified investment portfolio helps reduce an investors risk by offsetting potential losses from some securities with potential gains in others. The average investor might find it expensive and difficult to construct a portfolio of individual securities as diversified as that of a UIT.
UIT diversifies its holdings by purchasing a variety of stocks or bonds. The trusts diversified investment portfolio helps reduce an investors risk by offsetting potential losses from some securities with potential gains in others. The average investor might find it expensive and difficult to construct a portfolio of individual securities as diversified as that of a UIT.