Tradersguruji

  Unit Investment Trust Basics for New Investors When you began your investing journey, you might have come across something known as a UIT, or Unit Investment Trust. This overview will walk you through some of the basics, so you have a good working knowledge of what UITs are, how they are put together, and why they were such a mainstay of investor portfolios for so many generations.  What Is a Unit Investment Trust? Like a mutual fund, a unit investment trust is registered with the United States Securities and Exchange Commission under the Investment Company Act of 1940. A UIT differs from a mutual fund in that it consists of a basket of passively held stocks, bonds, mortgages, REITs, MLPs, preferred stocks, or other securities put together by an investment bank, brokerage firm, wealth management company, or sponsor that raised money from investors to construct the portfolio in accordance with the guidelines spe...