Unit investment trusts offer a simple, convenient, and an affordable way to develop a well-diversified investment portfolio of stocks and/or bonds without having to select, choose, and manage the individual investments yourself, which saves significant time.
The investments within a unit trust are fixed for a predetermined time, which means the investments do not change unless a company is bought or merged with another company, or a company’s financial condition becomes irreparable. This means you always know what you own. Securities in the trust will not be sold to take advantage of market conditions.
Buying Trust Units
Owning a unit of the trust means you own a proportional share of all the investments within the portfolio. It also means that, for a fraction of the cost, you can have diversified investments (including stocks and/or bonds) that may normally require $100,000 or more to purchase on their own.
Unit investment trusts may be suitable for most investors, whether they’re conservative, more aggressive, or somewhere in between. That’s because unit trusts provide diversification of quality stocks in a convenient and affordable package without losing the liquidity many investors need.
Unit investment trusts are not actively managed. Securities in the trust will not be sold to take advantage of market conditions. The trust may continue to hold securities even though their market value and dividend yields may have changed.
Association Financial, LLC, and Association Financial Services, LLC, can provide you with a wide range of advisory services (whether fixed or variable investments), including:
- Annuity selection (fixed or fixed-indexed)
- Assistance in deciding when to buy and sell your investments
- Review of insurance and investment portfolios, as well as transferring assets or qualified plan rollovers
- Individual bond, commodity, equities (stocks), ESG stocks, Exchange Traded Product (ETP), investment trust, and REIT selection
- Strategic asset allocation strategies including re-balancing
- Attorney and CPA services
- and much more.
Contact us here for more information.
Investing in securities involves risk of loss that clients should be prepared to bear.
