| unit trust (defs. 1, 2). |
| 1. | Also called fixed investment trust, fixed trust. an investment company that has a fixed portfolio of securities, usually of a single type, such as municipal bonds or corporate bonds, which are held to maturity: each investor receives a share in the amount proportionate to his or her holding. |
| 2. | Also called u⋅ni⋅trust  [yoo-ni-truhst]  . an inflexible type of mutual fund in which each investor is obligated to invest a total specified amount in a certain number of shares, payable in equal amounts on a monthly or quarterly basis over an extended period of time. |
| 3. | British. mutual fund. |
Unit Investment Trust - UIT
A registered trust in which a fixed portfolio of income-producing securities are purchased and held to maturity. Commonly used with municipal bonds, investors receive an undivided interest of the portfolio's principal as well as income proportionate to the amount they invested.
Investopedia Commentary
Each unit typically costs $1,000 and is sold to investors by brokers. UITs can be resold in the secondary market.
See also: Equity Unit Investment Trust, Secondary Market, Trust, Unit Trust
Also spelled: UIT
unit investment trust
nɪˌtrʌst