Unit Trust or Mutual Fund in Malaysia? U nit trust  is an unincorporated mutual fund structure that allows funds to hold assets and provide profits that go straight to individual  unit  holders instead of reinvesting them back into the fund. The investment fund is set up under a  Trust  Deed . A  unit trust , also called a  mutual fund , pools money together from a large number of investors to buy stocks, bonds and other securities. ... Typically, investors can only invest into a  fund  through the management company, though some sale charges can also buy shares in these funds for their customers. Mutual funds are investment schemes, very similar to unit trust, found in the United States and a few other countries. Though there are three different types of mutual funds i.e. open-ended, unit investment trust, and closed-ended, the most common is the open-ended fund. They work on the same principle as a unit trust. So we can say that it i...