Unit Investment Trust (UIT)

A professionally constructed but unmanaged portfolio sold by an investment company specializing in capital appreciation or dividend income. Individual units are typically offered for as low as $1,000, are tradable, and represent a specific investment strategy over a fixed period of time.

 

THE PROs

  • Diversification
  • Offered in many strategies
  • Low minimums

THE CONs

  • Restricted access to invested capital regardless of performance
  • Difficult to monitor
  • Potentially high fees

 

KEY QUESTIONS

1. What is the stated date of termination on the fund?

2. What is the stated investment objective of the fund?

3. Is this UIT exchangeable?

4. Please show me the track record of this UIT versus the appropriate index.

5. What is the total expense including manager, commissions, advisor fee, transaction costs, etc.?