Which statement is true regarding UITF fees?

UITFs, or Unit Investment Trust Funds, indeed incur trust fees, making the statement regarding trust fees applied to UITFs accurate. These fees are typically used to cover the operational expenses associated with managing the fund, such as investment management, administration, audit, and custodial services.

Unlike mutual funds or other investment vehicles where fees can vary significantly based on other factors, the trust fees in UITFs are directly tied to the costs of maintaining the trust. These fees are a standard component of UITF management and help ensure that there is a professional management team in place to handle the investments and oversight of the fund's activities.

The other statements do not correctly characterize the structure of UITF fees. For example, fees are not exclusively linked to the income generated or specific asset classes, such as equity; nor are they contingent on performance metrics, which can lead to confusion around fee assessment. Therefore, it is crucial for investors to understand that a portion of their investment is used to cover these essential management and operational costs.