What are the risks associated with UITs?
As with all investments, UITs carry risks, including market risk, interest rate risk, and the risk of issuer default, among others. The specific risks depend on the securities held by the UIT.
Related Articles
What are the risks associated with CEFs?
Investing in CEFs involves risks similar to those of other securities, including market volatility, interest rate risk, and the risk associated with the underlying assets. Additionally, the possibility of shares trading at a discount to NAV can add ...
How are UITs taxed?
The taxation of UITs can be complex and depends on the type of securities held by the trust and the investor's personal tax situation. Generally, investors are subject to taxes on income distributions and capital gains. It's recommended to consult a ...
What types of securities do UITs hold?
UITs can hold a variety of securities, including but not limited to stocks, bonds, and other financial instruments. The specific composition depends on the UIT's investment objective.
Are there any fees associated with CEFs?
CEFs may charge management fees and other expenses, which can vary by fund. Additionally, when buying or selling shares on the stock exchange, you may incur brokerage commissions.
How long does a UIT last?
UITs have a defined term that can range from a few months to several years. At the end of the term, the UIT is terminated, and the assets are liquidated, with proceeds distributed to unit holders.