Unit Investment Trusts

Unit Investment Trusts (UITs) are registered investment companies that purchase and hold a fixed portfolio of stocks and bonds. The "units" in the trust are then purchased by investors who receive a share of the principal and dividends. Two main types of UITs exist: equity trusts and bond trusts with bond trusts further divided into taxable and tax-free trusts.

The securities in a UIT are professionally selected to meet a stated investment objective such as growth, income or capital appreciation. Once the trust's portfolio is selected, its securities are generally not traded but can be sold or replaced if the financial viability of the issuer or the security's creditworthiness falters. The overall portfolio risk to an investor is reduced because the UIT holds a diversified portfolio.

Because the market value of the trust units fluctuates with changes in market conditions and the value of the underlying securities within the UIT, shares of the unit trust may be worth more or less than their original price when sold. Always consult with your J.P. Turner financial advisor to see if a UIT is suitable for your personal investing strategy.

Why diversify your J.P. Turner portfolio with Unit Investment Trusts (UITs)?
Unit Investment Trusts offer a simple, convenient and affordable way to develop a well-diversified investment strategy within your J.P. Turner portfolio of stocks and/or bonds without having to select and manage the individual investments yourself.
Ask your J.P. Turner financial advisor about diversifying your portfolio using Unit Investment Trusts.