Unit trust definition

A unit trust manages portfolios of stocks, bonds, and other assets on behalf of investors.

Unit trust definition

A unit trust manages portfolios of stocks, bonds, and other assets on behalf of investors.

Those investors buy units of the trust or fund, and the price of the unit depends on the net asset value of the fund’s underlying investments. It’s a form of mutual fund, and unit trusts can distribute profits to the unit holders and/or reinvest them back into the fund. It is also what’s known as an open-ended investment product, meaning there’s no limit to how many people can invest or how much can be invested.

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