Unit trust,

Definition of Unit trust:

1. An organization which takes money from small investors and invests it in stocks and shares for them under a trust deed, the investment being in the form of shares (or units) in the trust.

2. (in the UK and some other countries) a collective investment fund that is priced, bought, and sold in units that represent a mixture of the securities underlying the fund.

How to use Unit trust in a sentence?

1. Anyone who has invested in a unit trust or a pension fund knows that his fund manager is not answerable in any meaningful sense.

Unit Trust

Mutual funds invest money in the stock market on behalf of many individual investors who pool all their funds to invest on their behalf by an investment professional who manages the fund.

The fund manager invests this money in a portfolio (or a wide range) of companies to spread the risk.

Mutual funds are the US equivalent of mutual funds.

Millions of Americans invest in mutual funds, which at one point in the 1990s outnumbered the bull market in numbers listed on the New York Stock Exchange.