How Unit Investment Trusts Affect You

At Meyer Wilson, we have seen numerous clients who have lost money due to unit investment trusts (UITs). Brokers and brokerage firms are often pitching UITs as helpful and beneficial. Unfortunately, not all investors can benefit from this and ordinary mutual funds are probably the better option. Brokers do not always explain the risks involved with UITs and investors often feel the most of the damage. It often goes unknown that UITs can be expensive, but the brokers do not always divulge this information.

Watch As Attorney David Meyer Explains Unit Investment Trusts (UITs)

Brokers may sell UITs on a commission fee basis and they often stand to gain the most from this action. The problem with most UITs is that they usually remain fixed on a buy and hold basis. This ends when the trust is terminated. Most investors can experience various fees, charges, and taxes that can affect their investment because the UIT was pushed on them with the idea of reinvesting.

While not all UITs are bad and some brokers can make this a positive investment, not all brokers understand them completely and thus can’t help investors understand them. They are complex and often difficult to navigate. When someone who is inexperienced with UITs recommends this investment, it is bad advice and should be avoided completely. This is what often causes unsuspecting investors to lose money.

Our securities attorneys at Meyer Wilson help investors who have lost money due to bad advice, fraudulent schemes, or other related violations. We work to help our clients recover their losses from the responsible broker. You can schedule your complimentary case evaluation with our firm and discuss the specific details of your case. Our goal is to protect you and your finances from breach of fiduciary duty on the broker’s or brokerage firm’s behalf. Call us today to begin discussing your case.


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