UITs are another way for investors to increase their overall investment portfolio's diversity while taking advantage of other features not available to mutual investors. UITs are comprised of equity, or stocks, or bonds, depending on the type of UIT. Investors who invest in UITs of the equity or stock trust type generally want to protect their investment capital while receiving dividend income. Investors who invest in UITs of the bond trust type are generally looking for the ability to shelter taxable capital.  UITs offer investors shelter from unrealized capital gains taxes because the individual UIT is assembled and purchased for a specified period of time and the cost basis consists of the initial purchase price of the securities held in the trust.

In addition, because the investment portfolio of a UIT is generally relatively fixed, investors know more about what they are investing in for the duration of the investment.