There are many definitions of risk but for the purposes of this dissertation we define risk as the degree to which returns fluctuate. This is usually measured statistically by using one standard deviation from the mean or average historical returns. Refer also to our pages on Modern Portfolio Theory. Trust Deed A rather weighty tome establishing the trust and defining among other things the purpose, investment objectives, participants, permitted investments, period, and general conditions of operation of the trust. A unit in a unit trust represents an entitlement to share in the profits, gains and losses of the fund.
Units have equal capital value and entitlement to income.
In this respect they may be considered as 'shares' in the fund. Related Legal Information. All Rights Reserved.