Unit trustUnit trusts are collective funds which allow private investors to pool their money in a single fund, thus spreading their risk, getting the benefit of professional fund management, and reducing their dealing costs.Features of unit trusts:They are open-ended which means that the trust can issue new units in response to demand. This means that unit trusts trade at their net asset value - that is the value of their underlying assets divided by the number of units in issue. Contrast this with investment trusts, which are closed funds. Their share prices are affected by market forces and often trade at a substantial discount to net asset value.Different trusts have different investment objectives. Some invest for income, some for growth. Some invest in small companies, some in large. Some invest in the UK, some in other territories. As an investor you can choose the trust that matches your interest and objectives.Investment decisions are made by professional fund managers appointed by the trustees. These managers make annual charges.Every day the trustees compute the value of the trust, divide it by the number of units in issue, and produce a bid and offer price based on that calculation. Unfortunately, when you invest in a unit trust, you usually never know the price you will be charged for units until the next valuation point, typically midday the following day.Unit trusts are well suited to regular savers who want to drip-feed money into the market every month. With unit trusts, you can invest as little as £50 per month, averaging the acquisition cost of your shares over many months.Many unit trusts make an initial charge when you invest, and their management charges are deducted from fund income.
Unit trustIn the United Kingdom and other foreign markets, an open-end mutual fund.
Qualified plan or trustQualified plan or trust
A tax-deferred plan allowing employer and employee contributions that build up savings, which are paid out at retirement or on termination of employment. Tax is paid only when amounts are drawn from the trust.
Trustee In BankruptcyTrustee In Bankruptcy
One appointed by a bankruptcy court, and in whom the property of the bankrupt vests. The trustee holds the property in trust, not for the bankrupt, but for the creditors.
Discretionary trustDiscretionary trust
A private trust which empowers trustees to use their discretion in distributing funds to beneficiaries. Typically set up for children, and often designed so that trustees can decide not to pay money out to children who are not responsible enough to handle the money.
D Declaration Of TrustD Declaration Of Trust
A written acknowledgement by one holding legal title to property that the property is held in trust for the benefit of another.
Agent of a bond issuer who handles the administrative aspects of a loan and ensures that the borrower complies with the terms of the bond indenture.
Further Suggestionsventure capital trust
split capital investment trust
Association of Unit Trusts and Investment Funds
Deed Of Trust
approved investment trust
Voting trust certificate
Trustee in bankruptcy
Collateral trust bonds
Municipal Investment Trust (MIT)
Equipment trust certificates
Inter vivos trust
Grantor Retained Income Trust (GRIT)