Although what one person may view as a disadvantage another may see as a desirable quality, below are some factors which may be disadvantages depending on your point of view: All mutual funds charge expenses. Whether they be marketing, management or brokerage fees fund expenses are generally passed back to the investors. Investors exercise no control over what securities the fund buys or sells.

The securities in a UIT are professionally selected to meet a stated investment objective, such as growth, income, or capital appreciation. UITs employ a "buy-and-hold" investment strategy: once the trust's portfolio is selected, its securities typically will not be sold or new ones bought, unlike mutual funds.

A mutual fund is a trust that pools the money of several investors and manages investments on their behalf. Legally it is like any other company you know of. Hence, the fund is also called a mutual fund company. The fund company takes your money and like you from other new investors. This is added to the money that's already invested with the fund. Some investors see asset size as an indicator of popularity. A scheme with large assets could be subscribed to by large number of unitholders.