Unit Trust

Unit Trusts: A unit trust, also known as a fixed trust or a collective investment scheme, is a form of trust where the beneficiaries hold units in the trust rather than direct ownership of the underlying assets. These units represent a proportionate interest in the trust's assets and income. Unit trusts are commonly used for collective investment purposes, such as pooled investment funds, where investors contribute capital to the trust and receive units in return. The trustee manages the trust's assets on behalf of the unit holders and distributes income or capital gains generated by the trust according to the proportionate interests of the unit holders. Unit trusts are often regulated by financial authorities to ensure transparency and investor protection.

Fixed Unit Trusts: A fixed unit trust is a specific type of unit trust where the number of units issued by the trust is fixed and predetermined. Unlike other types of unit trusts where units can be created or redeemed, the number of units in a fixed unit trust remains constant throughout its existence. This means that new investors cannot join the trust by purchasing additional units, nor can existing investors increase their holdings. Fixed unit trusts are often used for specific investment purposes, such as real estate investments or private equity funds, where the structure of the trust is designed to remain stable over time. The distribution of income or profits in a fixed unit trust is typically based on the proportionate ownership of units held by investors, as specified in the trust deed.

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