Because they operate over a fixed term with a specified termination date, unit investment trusts are largely illiquid. They also don’t incorporate active management techniques, meaning that the assets within them generally stay put after the initial investment period for the life span of the fund. Since the ownership units are redeemable, you could sell them back to the trust at net asset value (NAV). This can be a disadvantage, however, per Kovar. “[O]nce invested, your capital is typically tied up until the trust’s termination,” he says. “Additionally, the fixed portfolio means that UITs cannot adapt to changing market conditions, which could be a disadvantage in volatile markets.”