What is a unitholder agreement?

A unitholders agreement is a contract between the unitholders of a unit trust and the trustees. This agreement includes agreed conditions as to how the trust operates.

What is a unitholder shareholder?

A unitholder is an investor who owns one or more units in an investment trust or master limited partnership (MLP). A unit is equivalent to a share, or piece of interest.

Is unitholder the same as shareholder?

As nouns the difference between shareholder and unitholder is that shareholder is one who owns shares of stock in a corporation while unitholder is (finance) an owner of a beneficial interest (“unit”) in a financial entity such as an investment trust.

Is a Unitholder a beneficiary?

A unit holder is a beneficiary of a unit trust. These units correspond to an interest in trust property. Unit trusts cannot derive a profit. At the end of each year/cycle, any profit is distributed to the unit holders proportionate the the amount of units held.

What are the disadvantages of unit trust?


  • Fees. Not only will you pay for trust units, but you must also pay fees for running the trust. These fees include:
  • Tax. If trust assets are sold at a loss that loss usually stays within the trust. You cannot offset asset losses against other streams of taxable income.

Where investment is by minor KYC compliance is required from?

Payment instrument (cheque from the minor’s account or from the guardian’s account). It is mandatory for the guardian to comply with KYC formalities for investments in funds. The guardian can operate the mutual fund account till the minor turns 18.

What is the difference between a unit holder and a shareholder?

A shareholder is a person who owns shares in a company, and a unit holder is a person holding units in a unit trust. Transfer of shares/interest – how can shares or interests be transferred to other members, or third parties.

How is unit trust taxed?

The income from unit trusts and OEICs is always taxable regardless of the share class or whether the income is actually taken or reinvested. However, it may be tax free if it falls within one of the allowances (dividend allowance or starting rate for savings/personal savings allowance).