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A unit investment trust (UIT) is a type of investment fund. A UIT consists of a fixed portfolio of securities—usually bonds—in which the selection of stocks or bonds remains constant during the life of the trust and new securities are not added to the portfolio. UITs may sell nonperforming investments, but the money from the sale is distributed to unit holders rather than being reinvested. Unlike other types of investment funds, such as open-end and closed-end mutual funds, the portfolio is not managed. Instead, it is established for a specified period—typically 20 to 30 years—and is placed under the management of a trustee. After the trust is created, ownership shares, or units, that reflect the value of the underlying assets are sold to investors. The assets cannot be redeemed until maturity. Throughout the...