UIT (Unit Investment Trust)

A Unit Investment Trust (UIT) is a type of investment fund that pools money from many investors to buy a fixed portfolio of stocks, bonds, or other securities. Unlike mutual funds, a UIT has a set portfolio that doesn’t change over time. Investors buy units of the trust, which represent a share of the holdings. UITs are usually designed to hold securities for a specific period, providing regular income and diversification. They are structured to be transparent and predictable, making them suitable for investors seeking a passive investment with a fixed plan and defined duration.