SIE practice questionmediumUITs - Redeeming
If an investor wishes to redeem units in a UIT prior to termination, they:
- AReceive a fixed price set at purchase
- BMust sell to another investor on an exchange
- CCan only redeem at trust termination
- DRedeem at the next calculated NAV with the issuer or sponsor✓ Correct answer
Explanation
Why D — Redeem at the next calculated NAV with the issuer or sponsor
Investors can redeem units at the next calculated NAV with the sponsor. UITs generally aren't exchange-traded; early redemptions are possible, and price fluctuates.
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