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whats the difference between a UNIT TRUST and a INVESTMENT TRUST?

cheers!

2007-03-28 11:49:05 · 3 answers · asked by bluecow 5 in Business & Finance Investing

3 answers

A unit trust is a pooled investment, where a group of investors get together to buy a collection of assets. It's sort of like a big investment club.

An investment trust, on the other hand, is itself a company, which in turn holds a collection of investments. You can buy shares in the company to get partial ownership of its assets.

In the long term, the two perform similarly. But in the short term, an investment trust can trade at a price that is higher or lower than the value of the assets it owns, due to supply and demand in the markets. Unit trust prices typically stay much closer to the prices of the underlying assets.

2007-03-28 12:33:35 · answer #1 · answered by Quite Contrarian 2 · 1 0

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Unit Investment Trust - Wikipedia, the free encyclopedia
A Unit Investment Trust (UIT) is an US investment company offering a fixed ... Unit Investment Trust. From Wikipedia, the free encyclopedia. Jump to: navigation, ...
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en.wikipedia.org/wiki/Unit_Investment_Trust - 19k - Cached - More from this site

Investment trust - Wikipedia, the free encyclopedia
Investment trusts are companies that invest in the shares of other companies for ... The investment trust often has no employees, only a board of directors ...

2007-03-28 11:59:22 · answer #2 · answered by Anonymous · 0 0

Unit trusts are usually run by bigger crooks.

2007-03-30 01:08:00 · answer #3 · answered by Anonymous · 0 0

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