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Unit Investment Trust
Unit Investment Trust is a registered investment company that purchases a fixed portfolio of income-producing securities in order to sell them to investors. Capital gains, interests and dividend payments are distributed to shareholders on regular time-basis.
Unit Investment Trusts, in general, are considered low risk investments, but therefore offer low returns.
Unlike mutual funds, these funds are not actively managed and are created for a specific length of time with predefined termination date. UIT also offer lower operating expense in compare to mutual funds, but have sale charges and entrance fees.
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