In the United Kingdom and other foreign markets , an open-end mutual fund . Bloomberg Financial Dictionary
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A form of collective investment scheme. Investors buy units in a unit trust which then uses the money raised to invest in a range of specified investment areas. If investors wish to redeem their units, they do so by selling them back to the manager of the unit trust. As a result, the unit trust will have to sell some investments to generate the cash required to repurchase the units. This gives rise to the description of unit trusts as open-ended - the size of the unit trust may vary and is determined by the level of new units purchased relative to units redeemed. Dresdner Kleinwort Wasserstein financial glossary
See also investment trusts, Undertakings for Collective Investment in Transferable Securities and open-ended investment companies. Dresdner Kleinwort Wasserstein financial glossary
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A fund which raises money from investors and invests it in a range of securities. Exchange Handbook Glossary
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A unit trust is a mutual fund or collective investment that pools investors' cash and invests it on their behalf. It is the role of the unit trust manager to make sure that the money is invested properly and delivers the best return for the investors. Financial Services Glossary
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► See Mutual Fund.
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unit trust UK US noun [C] FINANCE
► in the UK, a fund in which you buy units (= shares). This money is then put into a range of investments, etc., and profits are paid in relation to the number of units that you own: »
Collective investments such as unit trusts are ideal products for investment on behalf of a child.
Financial and business terms. 2012.