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Unit Trust

Discussion in 'Investing Glossary' started by Glossary, 27th Sep, 2006.

  1. Glossary

    Glossary Active Member

    Joined:
    12th Sep, 2006
    Posts:
    25
    Definition:

    A unit trust is a trust where the beneficiaries (usually referred to as "unitholders") have a fixed interest in the capital and income of the trust. The size of that interest is in proportion to the number of units they hold relative to the total number of units on issue.

    Conceptually a unit in a unit trust is somewhat like a share in a company, although legally they are quite different.

    Unit trusts are a popular joint investment structure. Most managed investment schemes are structured as unit trusts.

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