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Registered
Join Date: Aug 2004
Location: Andover, NY
Posts: 1,350
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Unit Trust help
Hello,
I manage my simple investments with Vanguard and I am very happy with their products and services. My retired father has an account with Morgan Stanley and mostly invests in CDs (which have terrible rates right now). I finally convinced him a couple of years ago to invest in a bond mutual fund and that has done very well. I told him it was time to move to stock based funds and despite my judgement his adviser sold him some "13 month large cap stock unit trusts" (UITs). From my reading these have very high fees and are basically sold by the advisers because of this. What is some information that I can pass on to my father about UITs? Right now he is convinced that the Morgan Stanley guy has his best interests at heart, but I feel that these guys are greedy bastards. Thanks for your help brain trust!
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Alexander '75 911S Targa '86 951 SOLD |
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02-12-2014, 06:33 PM
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Registered
Join Date: Nov 2007
Posts: 6,274
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I think you are correct sketckers365. As you know large caps, refers to companies that are among the largest in the country(or world). "Cap" refers to capitalization, meaning the market value of the company.
He could have bought a low cost large cap mutual fund. So I am guessing the Unit Investment Trust (UIT) ties the stocks in some kind of 13 month maturity date or something. Sounds like something created by Morgan Stanley. I am sure with fees and commissions. |
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02-12-2014, 07:18 PM
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