UIT (Unit Investment Trust)

UIT stands for unit investment trust. A UIT pools money from investors into a generally fixed portfolio of securities and normally has a specified date when the trust will terminate.

Reviewed September 2026

How it differs from a mutual fund

A traditional mutual fund issues and redeems shares on an ongoing basis and may actively or passively manage its portfolio. A UIT typically offers a fixed number of units, holds a relatively fixed portfolio and ends on a stated date.

Why investors use the term UIT

You may see “UIT” in fund documents, brokerage research or descriptions of investment-company structures. It describes the legal and operational structure rather than a specific investment strategy.

What to check

Look at the underlying holdings, termination date, sales charges, ongoing expenses and redemption terms. The risks come mainly from what the UIT owns, plus the fees and structure of the trust.

Related concepts

• Unit Investment Trust
• Mutual fund
• Net asset value

Primary reference

For the formal definition and current regulatory context, see Investor.gov: Unit Investment Trusts (UITs).