Arvest UIT fund to debut in April
by February 22, 1999 12:00 am 75 views
Schumacher’s appearance is in conjunction with Arvest Investments’ planned introduction of a unit investment trust fund to include a number of stocks from the Arvest 50, a stock index that includes companies of interest to areas where Arvest has holdings.
The Regional Select Equity Growth Trust, which will be marketed as a unit investment trust fund, will consist of 20 to 30 stocks picked by Schumacher, Parks says. He hopes to introduce it by April 1.
Parks says a UIT has some tax advantages over equity funds because capital gains aren’t paid out automatically. “A UIT is probably not for everybody, but [it is] for those people who need a little bit of a tax break and are buy-and-hold investors.”
The minimum investment will probably be about $2,500 although it may be lower for IRA accounts, Parks says. Units will sell for $10 each on the date of deposit, the day the fund debuts, but after that, the unit price will fluctuate with the market.
Parks says Arvest Investments is introducing the fund to bring attention to its many services. “It’s another way of trying to create some awareness that, hey, we do more than discount brokerage.”