What is a Unit Investment Trust?
A Unit Investment Trust (UIT) is a specialized investment company that purchases a fixed portfolio of stocks, bonds or other securities. Investors purchase units of the trust, which represent an undivided ownership in the entire portfolio. UITs have stated maturities that range from one year to as many as thirty years, depending on the type of holdings that are in the portfolio. Trusts are designed to fill a variety of investment needs and risk tolerance levels. They fall primarily into two categories, equity and fixed income.
