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What is the difference between a unit investment trust and a managed investment company?

April 26, 2017COMPANY Investment managed Trust

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What is the difference between a unit investment trust and a managed investment company?

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Unit investment trusts are created for a specific, limited purpose, and do not have a board of directors or an investment advisor. Therefore, these trusts do not make discretionary investment decisions. Funds operated by managed investment companies, however, do make discretionary investment decisions, at least within the confines of the fund investment guidelines.