A unit investment trust is an unmanaged investment company that offers a fixed portfolio of stocks and bonds.UITs are designed to provide capital appreciation and/or dividend income for a specific period of time. For example, an investor contacts his broker and buys one UIT for $1,000, which is a UIT’s typical cost. The UIT is composed of underlying securities, and it issues redeemable units and interest to the investor at the end of each quarter. The UIT is terminated on a fixed future date. At that point, the investor receives the UIT’s going price, which depends on the current market value of its underlying stocks and bonds. UITs have no board of directors, investment advisors or any sort of active management, which means more money for the investor. Their underlying assets remain unchanged. UITs are set up under a trust indenture that serves as a contract between the UIT and its holder to ensure all established conditions are met. UITs can be resold in the secondary market, but fees will be attached. They are one of the three types of investment companies. The other two are mutual funds and closed-end funds.