Description
A unit trust is a trust in which the trust property is divided into a number of defined shares called units. The beneficiaries subscribe for the units in much the same way as shareholders in a company subscribe for shares.
In an ordinary unit trust a beneficiary is entitled to the income and capital of the trust in proportion to the number of units held. A unit in a unit trust is really just a means of describing the share in the trust fund to which the unitholder is entitled.
