What type of UITF primarily invests in stocks?

The type of UITF that primarily invests in stocks is the Equity UITF. This fund is specifically designed to allocate a significant portion of its capital towards equity securities, which are shares of stock issued by companies. The primary objective of an Equity UITF is capital appreciation over time, making it suitable for investors looking for growth through the stock market.

In addition to investing in common stocks, an Equity UITF may also include investments in preference shares or other equity-related instruments. The performance of these funds is closely tied to the performance of the equity market, which can result in higher volatility compared to funds that invest in fixed income or cash instruments.

In contrast, a Fixed Income UITF primarily invests in bonds and other debt instruments, focusing on providing income rather than capital gains. A Money Market UITF, on the other hand, invests in short-term instruments such as Treasury bills and commercial papers, aiming for preservation of capital and liquidity rather than growth. The term Pooled Fund UITF is broad and may refer to various types of funds that combine capital from multiple investors, but it does not specifically indicate a focus on stock investments.

In summary, the correct classification for a UITF that invests primarily in stocks is indeed the Equity UITF, reflecting its focus