Is UIT an institution?

Just curious. I get that UIT is a registered investment company but is it an institution?

I am guessing so because it is a registered investment company.

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Hi @FoxMcCloud! Good question!

Just like a mutual fund is considered an institution, a UIT would be as well. An institution is an organization that makes a business out of investing its customers’ money. Similar to how a mutual fund invests its shareholders’ money, a UIT does as a well (during the formation of the UIT; keep in mind these are fixed portfolios that do not change after initially set).


Made sense!

So, just for my clarification, an institution is also another word for a registered investment company, correct?

haha, sorry…I am trying to wrap my head around these word games.

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Don’t be sorry - that’s what this forum is here for! Glad you’re asking these questions.

A registered investment company is a type of institution. Just like a Ford Mustang is a type of car, but we wouldn’t say all cars are Mustangs. Any time we have a financial organization investing their customers’ or clients’ money, we consider them an institution. Institutions include:

  • Investment adviser firms
  • Insurance companies
  • Banks
  • Mutual funds
  • Hedge funds
  • Closed-end funds
  • UITs

I hope this clarifies it!


Thank you!

definitely clears things up.

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