Unit Investment Trusts do not charge a management fee. They have a fixed portfolio of securities. UITs may or may not be tradable on an exchange. Some need to be redeemed directly with the issuer.

Training Mode

Unit 1 Unit 2 Unit 3 Unit 4

Which of the following is TRUE of UITs?

They have a variable portfolio of securities and charge a management fee

They are extremely liquid - more so than a blue chip stock

They have a guaranteed rate of return in their prospectus

They have a fixed portfolio of securities and do not charge a management fee.