Which of the following characteristics is associated with a Unit Investment Trust (UIT)?

A Unit Investment Trust (UIT) is a type of investment vehicle that is characterized by its fixed portfolio composition. When a UIT is created, it pools funds from multiple investors to purchase a specific set of securities, and this set of securities remains unchanged for the duration of the trust. This means that once the UIT has been established, the portfolio does not adjust to market fluctuations or changes in investment strategy, which is a fundamental feature of UITs.

This characteristic provides investors with a predictable investment option, as they can be confident in the securities held within the trust and the associated investment objectives. It differs from mutual funds, which actively manage their portfolios and frequently buy and sell securities to optimize returns.

The other options do not accurately reflect the nature of a UIT. For instance, UITs do have a termination date, usually set in advance, at which point the trust is dissolved, and the proceeds are distributed to investors. This differentiates them from open-end mutual funds, which do not have a termination date. Moreover, a UIT is not actively managed by a team; instead, it operates passively based on the fixed securities selected at the creation of the trust.