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How is a UIT different than a mutual fund and how are the securities selected?

April 26, 2017different mutual fund securities Selected UIT

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How is a UIT different than a mutual fund and how are the securities selected?

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The securities in a UIT are professionally selected to meet a stated investment objective, such as growth, income, or capital appreciation. UITs employ a buy-and-hold investment strategy: once the trusts portfolio is selected, its securities typically will not be sold or new ones bought, unlike mutual funds.