Unit investment trusts have a high security turnover rate, increasing their costs over equivalent mutual funds.

Name: Unit investment trusts have a high security turnover rate, increasing their costs over equivalent mutual funds.
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Question

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Unit investment trusts (UITs) have a fixed portfolio of securities that does not change over the life of the trust, leading to lower turnover rates and potentially lower costs compared to mutual funds, which actively trade securities.

Unit Investment Trusts Have a High Security Turnover Rate, Increasing