Which UITF invests in debt securities?

Prepare for the Unit Investment Trust Funds Exam with our comprehensive questions and answers. Study with multiple-choice questions and detailed explanations to ensure success!

The Fixed Income UITF is specifically designed to focus on debt securities, such as bonds and other fixed-income instruments. These funds primarily invest in government and corporate bonds, which provide regular interest payments and are considered to have lower risk compared to equity investments. The investment objective of a Fixed Income UITF is to generate income through interest payments while providing capital preservation, making it an attractive option for conservative investors seeking steady returns.

In contrast, an Equity UITF primarily invests in stocks and shares, providing growth potential but also higher volatility and risk. A Real Estate UITF invests in real estate properties or real estate investment trusts (REITs), focusing on the real estate market rather than fixed-income assets. A Hybrid UITF combines elements of both equity and fixed-income investments, diversifying its portfolio but not exclusively focusing on debt securities. Therefore, the Fixed Income UITF is the only one among the choices that specifically targets investment in debt securities.

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