Unit Trust - UT


DEFINITION of 'Unit Trust - UT'

An unincorporated mutual fund structure that allows funds to hold assets and pass profits through to the individual owners, rather than reinvesting them back into the fund. The investment fund is set up under a trust deed. The investor is effectively the beneficiary under the trust.

See also "unit investment trust".


The success of a unit trust depends on the expertise and experience of the management company. Common types of investments undertaken by unit trusts are property, securities, mortgages and cash equivalents.

In the U.K. the term "unit trust" is synonymous with "mutual fund" as it is used in North America.

  1. Trust

    A fiduciary relationship in which one party, known as a trustor, ...
  2. Unit Investment Trust - UIT

    An investment company that offers a fixed, unmanaged portfolio, ...
  3. Estimated Current Return

    The estimated return for a unit investment trust over the short ...
  4. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  5. Irrevocable Trust

    A trust that can't be modified or terminated without the permission ...
  6. Taxes

    An involuntary fee levied on corporations or individuals that ...
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