unit trust


noun

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.
Also called u·ni·trust [yoo-ni-truhst] /ˈyu nɪˌtrʌst/. 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.
British. mutual fund.
Also called unit investment trust (for defs 1, 2).

Origin of unit trust

First recorded in 1935–40

British Dictionary definitions for unit investment trust

unit trust

noun

British an investment trust that issues units for public sale, the holders of which are creditors and not shareholders with their interests represented by a trust company independent of the issuing agency