Unit investment trusts grew by $2.7 billion in the first three months of 1994, slightly ahead of last year's pace, the Investment Company Institute reported.

Last year, unit trust had attracted $2.46 billion by the end of March.

Unit trust, closely resemble mutual funds, but there are some key differences. While the securities in a mutual fund portfolio are frequently traded, unit trust portfolios are fixed.

Also, mutual fund shares can be redeemed at any time, whereas unti thrusts have a set maturity date.

In March 1994, deposits in unit trusts increased by $779 million. Tax-free bond trusts were the big gainers in March, attracting $375.2 million, versus $210.2 million in equity trusts and $193.6 million in taxable bond trusts.

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