Widely Held Fixed Investment Trust - WHFIT

AAA

DEFINITION of 'Widely Held Fixed Investment Trust - WHFIT'

A fixed investment trust that is held by at least one third party, or middleman, rather than the owner of the trust. A widely held fixed investment trust (WHFIT) is set up by an investor or group of investors who create a portfolio of investments that are generally low risk/return. The investors then sell shares of the trust to different individuals. Holders of the trust are paid dividends and interest at regular intervals.

INVESTOPEDIA EXPLAINS 'Widely Held Fixed Investment Trust - WHFIT'

The 'middleman' refers to a holder of a trust that is holding the trust on behalf of someone else. The middleman can also be the person that acts as an intermediary for another person's account. A broker is an example of a middleman.

RELATED TERMS
  1. Interest

    1. The charge for the privilege of borrowing money, typically ...
  2. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  3. Portfolio

    A grouping of financial assets such as stocks, bonds and cash ...
  4. Trust

    A fiduciary relationship in which one party, known as a trustor, ...
  5. Dividend

    1. A distribution of a portion of a company's earnings, decided ...
  6. Collateralized Loan Obligation ...

    A security backed by a pool of debt, often low-rated corporate ...
Related Articles
  1. Add Some Real Estate To Your Portfolio
    Mutual Funds & ETFs

    Add Some Real Estate To Your Portfolio

  2. Guard Your Portfolio With Defensive ...
    Active Trading

    Guard Your Portfolio With Defensive ...

  3. Investing In A Unit Investment Trust
    Bonds & Fixed Income

    Investing In A Unit Investment Trust

  4. The Impact Of Interest Rates On Real ...
    Bonds & Fixed Income

    The Impact Of Interest Rates On Real ...

comments powered by Disqus
Hot Definitions
  1. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  2. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  3. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  4. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  5. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  6. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
Trading Center