when two people unit with each other as one and belive in each other with trust and faith.

is an investment fund established under a trust deed whereby the trust sells units in the in the trust to investors.

Unit Trust is a type of collective investment found in countries such as Australia, Ireland, United Kingdom and parts of Africa. Unit Trust was first founded in the United Kingdom in 1931.

Unit Investment Trust Mutual Fund

The major difference between a Unit Trust and a mutual fund is that a mutual fund is actively managed, while a unit investment trust is not managed at all. Capital gains, interest and dividend payments from the trust are passed on to shareholders at regular periods. If the trust is one that invests only in tax-free securities, then the income from the trust is also tax-free.

A unit investment trust is generally considered a low-risk, low-return investment.

Some investors prefer Unit Trusts to mutual funds because Unit Trusts typically incur lower annual operating expenses (since they are not buying and selling shares); however, Unit Trusts often have sales charges and entrance/exit fees.

Mutual funds can be open ended or close ended. But unit trusts are open ended instruments.