Defined asset fund(redirected from Defined Asset Funds)
Defined asset fund
A unit investment trust consisting of a fixed portfolio of securities, including blue chips, REITs, or high-yielding stocks on a major exchange such as the NYSE or FTSE.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Defined Asset Fund
A unit investment trust that exists only for a limited period of time, after which it is liquidated. A unit investment trust consists of an unmanaged portfolio of securities, the rights to which are sold to investors as shares or units. The dividends and/or coupons from these securities are passed on to unit holders, just as in a mutual fund. A defined asset fund works like this, with the addition that, at a certain maturity, the assets in the fund are liquidated and distributed to unit holders.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved