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Q4B.

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Essentials Of Investments
Found in: Page 104
Essentials Of Investments

Essentials Of Investments

Book edition 9th
Author(s) Zvi Bodie, Alex Kane, Alan Marcus, Alan J. Marcus
Pages 748 pages
ISBN 9780078034695

Short Answer

What are some differences between a unit investment trust and a closed-end fund?

Unit investment trust is unmanaged while closed-end fund is management investment fund. Its portfolios are fixed.

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Step by Step Solution

Definition

Unit investment trust is classified and regulated as an investment company.

Explanation on differences

Differences between a unit investment trust and a closed end fund:

Unit investment trust

Closed end fund

1. It is an unmanaged investment fund.

1. It is a managed investment fund.

2. Its portfolios are fixed and do not change due to asset change.

2. The composition of its portfolio may change as deemed fit by its managers.

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