Unit Investment Trust - UIT
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Definition of 'Unit Investment Trust - UIT'
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. It is designed to provide capital appreciation and/or dividend income.
Unit investment trusts are one of three types of investment companies; the other two are mutual funds and closed-end funds
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Investopedia explains 'Unit Investment Trust - UIT'
Each unit typically costs $1,000 and is sold to investors by brokers. UITs can be resold in the secondary market. A UIT may be either a regulated investment corporation (RIC) or a grantor trust. The former is a corporation in which the investors are joint owners; the latter grants investors proportional ownership in the UIT's underlying securities.
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To take advantage of all your investing options, you need to know what your choices are. Here we tell you about the diverse features and advantages of 20 different financial instruments.
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Unit investment trusts provide direct exposure to the energy sector, fueling better returns.
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UITs offer professional portfolio selection and a definitive investment objective. Are they right for you?
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