How finance folk use it
UITF stands for Unit Investment Trust Fund. In this type of investment product, professionals take care of choosing and managing the different financial instruments (like stocks, bonds, securities and equities) that will go in it.
UITFs are quite basic and simple investments, but they can still yield good returns if their contents are chosen properly. The value of your investment in a UITF is dependent on the NAVPU, or Net Asset Value Per Unit. Read more about that here.
Is it good or bad?
UITFs are great investments that don’t require a lot of effort to maintain. Because their risk rating is determined by the specific financial instruments that are inside, they can fit the needs of people with all sorts of risk tolerance.
Remember, though, that all UITFs bear some level of risk. When investing, only use money that you can afford to lose!
What it means for you
Get a UITF if you’re the type of person who prefers investments that you don’t have to choose or manage yourself. Find a fund manager at a bank you trust, and let them take care of everything.
