in Britain, an organization that collects money from subscribers, called unitholders, usu. small investors, and invests it in securities for their benefit. Unlike an investment trust, a unit trust is not a company, and trust units are not traded on the Stock Exchange., Traditionally only used in countries with an Anglo-American tradition. In banking terms a unit trust means a bank operating out of only one office and with no branches as required by states having unit banking laws., an organisation which takes money from small investors and invests it in stocks and shares for them under a trust deed,the investment being in the form of shares in the trust