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Glite Dictionary
unit investment trust

unit investment trust

7.2
A company that pools money to buy a set of stocks and bonds, with shares investors can sell back
  • noun
  • /ˈjunɪt ɪnˈvɛstmənt trʌst/
  • Specialized
translation icon : fondo de inversión unitario
  • Many retirement accounts include a unit investment trust as an option due to its stability and regulated structure.

Examples

  • The unit investment trust has performed well this year.

  • Many investors prefer a unit investment trust for diversification.

  • A unit investment trust offers investors a simple way to diversify their holdings.

  • Many people appreciate the transparency provided by a unit investment trust structure.

  • She decided to put part of her savings into a unit investment trust for long-term growth.

  • Investors can benefit from a unit investment trust because it offers a diversified portfolio managed by professionals.

  • A unit investment trust allows individuals to invest together in a fixed selection of securities, simplifying the investment process.

Synonyms

fixed investment trust
vsunit investment trust
  • Specialized
8.3

A fund that keeps the same stocks or bonds selected at the start

is a regulated pooled company offering investor redeemable shares
nondiscretionary trust
vsunit investment trust
  • Formal
9.9

An investment that must hold only the stocks and bonds chosen when it was set up

is organized as a regulated pooled company allowing investor share redemption

Surface Forms

unit investment trust singular
unit investment trusts plural

Morphology

unit + investment + trust

A B1 learner who knows 'unit', 'investment', and 'trust' can infer a general idea that this is a financial/legal vehicle pooling money into investment 'units' held in a trust, so the basic concept is somewhat recoverable from the parts. However, the precise technical features (regulated status, fixed portfolio structure, redeemable shares) are specialised and not predictable from the constituents alone, so full understanding requires prior exposure or domain knowledge.

Etymology

Unit investment trust comes from the idea of selling a ready-made unit of investments kept in a trust. Imagine a sealed box with a 'fixed' group of investments that you buy as a 'share' and later can give back for cash, so the name means a company that sells a fixed bundle of investments people can own and return.