First of all, let us clarify that the definition of ‘unit trust’ varies from region to region. In the USA, a unit trust has different properties from a mutual fund. But in the United Kingdom, both have the same meaning. Similarly, in Asia, the term is used interchangeably with ‘mutual fund’. Going by the Asian definition, a unit trust is basically a fund where your money is pooled with other investors’ money. This fund is then used to invest in a portfolio of assets according to the fund’s investment objective and approach. That explains why ‘unit trust’ is sometimes just called ‘fund’ in short.