Unit Trust
Definition
What is Unit Trust?
A pooled investmentAn asset or commitment of money made with the expectation of future income, growth, or both. constituted under a trust deedThe legal document establishing a trust-based fund and defining the powers and duties of its parties., with units held for beneficiaries.
Example in practice
How This Looks in Practice
The manager invests the portfolioThe complete collection of investments owned by an investor or managed under one mandate. while the trustee oversees the arrangement for unitholders.
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Related Terms
Collective Investment Scheme
A regulated arrangement that pools investors' money for investment according to a common objective.
Fund Structure & RegulationOpen-Ended Fund
A fund that can create or cancel units as investors subscribe and redeem.
Fund Structure & RegulationClosed-Ended Fund
A fund with a relatively fixed number of units that investors usually trade with one another.
Portfolio MetricsAsset Allocation
The percentage of a portfolio invested across asset classes such as cash, bonds, shares, and property.