Question

How is a public unit trust structured and how does it operate? Why might an investor buy a public unit trust?

Answer 1

A public unit trust is a trust that can b formed with the limited members in securities market. It is a trust that can mostly used for diversification of their liquidity, stocks by diverting to bonds in trusts.There is less risk of particular investor hold the public unit trust.

Operating of trust : Trust is can be operated by limited members holdinv 75% of holdings with in the limited members. The trust can be more beneficial for all people they want to convert and present their stocks and they can show the property under trust.

Investor can be purchase the public unit trust to maintain:

1) It is more affordable me to investor to start with less investment.

2)They can early diversify their stocks by investing in public unit trust.

3) Trust is managed by professional fund management that can be give the good returns to investor.

4)The cost can be reduced if they invest in public holded trust to access their assets and transaction cost returns in form of income tax exception.