Routledge Dictionary of Economics, Second Edition
A trust that purchases stock exchange SECURITIES and sells unit portions of the portfolio acquired to the general public.
Many unit trusts have specialized portfolios, concentrating on property shares or securities of a particular country, on the yield of a portfolio or the rate of growth of its capital value. The trust managers charge the unit holders for their investment management. This investment device, introduced in the UK from the USA in 1931, is attractive to the small investor as a means of diversifying RISK.
See also: investment trust; mutual fund
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