Unit investment trusts offer a simple, convenient and affordable way to develop a well-diversified investment portfolio of stocks and/or bonds without having to select, choose and manage the individual investments yourself which saves significant time.
The investments within a unit trust are fixed for a predetermined time, which means the investments do not change unless a company is bought or merged with another company or a company’s financial condition becomes irreparable. This means you always know what you own. Securities in the trust will not be sold to take advantage of market conditions.
Buying Trust Units
Owning a unit of the trust means you own a proportional share of all the investments within the portfolio. It also means that, for a fraction of the cost, you can have diversified investments (including stocks and/or bonds) that may normally require $100,000 or more to purchase on their own.