What is the difference between a mutual fund and a unit trust?

A mutual fund typically offers some liquidity. i.e. you can subscribe and redeem shares on a regular basis based on the calculated net asset value (NAV).
A unit trust is sold on the open market, and then if you wish to buy or sell, you must do so on the open market, through a broker, at the market price which may be more or less then the calculated NAV

In a technical sense, they are both the same thing as they both have :

- Management, admin and other costs and fees deducted before your profits (or loss) is considered.

- A professional team trading based on a fixed, transparent mandate governed by the SEC.

- Generally bullish oriented and suffers when markets do badly.

- Can be based in any markets in the world.

- Can be based on stocks, index, bonds etc... but rarely derivatives.

- typically very big and may have different tie down periods.

- The kind of investment vehicle Robert Kiyosaki would avoid as you have no control over what the fund trades and how it is traded at all.

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