Total assets of unit investment trusts hit $6.09 billion at the end of June, a 25% increase over the same period a year earlier, according to the Investment Company Institute.

Investors poured $795.7 million of new assets into these funds in June, the data shows. Most of the growth was fueled by equity trusts, which drew $427.9 million of fresh new assets in June, hitting $3.43 billion.

Total assets in bond trusts are diminishing because the interest-rate environment has made them less attractive.

Tax-free bond trusts captured $304 million in fresh assets for a total of $1.97 billion, down from $2.06 billion from June 1994.

Through June, taxable bond trusts held $688.6 million, down from $907.1 million in the same period last year.

The securities in a unit investment trust portfolio are never traded, which distinguishes them from mutual funds. Because the portfolios are fixed, investors often enjoy lower management fees.

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