Common Trust Fund Vs. Unit Investment Trust Fund
Trusts are groups of assets--stocks, bonds, etc.--that provide benefits for an organization, child or other family member. A common trust fund and unit investment trusts are two major categories of trust funds.
Identification
A common trust fund is a collection of assets, such as stocks, bonds, real estate and cash. Typically, the beneficiary must wait until a certain age required by the trust to receive benefits. A unit investment trust is different in structure. It is also a combination of assets, but "units" are sold to investors for dividend income.
Common Trust Vs. Unit Investment Trust
A common trust fund is managed and overseen by a single trustee or multiple trustees according to the fund's specifications. A unit investment trust is comprised of a unmanaged portfolio of assets that are fixed. A united investment trust is regulated by a regulated investment corporation.
Benefits
Both trust funds feature benefits that are unique in their own way. Common trusts can provide income for individuals (child or otherwise) in the future, while an unit investment trust provides capital appreciation and dividend income for investors.
