Unit Trust is a collective fund of money pooled from a resource of investors, used to make investments and financial trades in industry markets for profits, which returns straight to it’s individual owners of its units, or investors, instead of it reinvested in the fund. This investment fund is set up under a trust deed, and its investor is effectively the beneficiary under the trust.

A unit trust’s success depends on the expertise and experience of a bank or company that manages it. As in which, money invested into a unit trust could also be lost. For such, it is invested in industry markets for profits by a fund manager, and so is managed, for a fee.

A unit trust’s fund manager commissions a portion of its investment or profit for his or her work, and does similarly, its invested industry market’s trustee.

After a unit trust’s investment fees are portioned for commissions, its remaining profits are distributed back to its unit owners or such investors.

The term ‘unit trust’ is also used in the United Kingdom as ‘mutual fund’, which has different properties from mutual funds in the United States.