A hybrid investment or security combines features of multiple types of financial instruments. These investment vehicles are crafted to provide a mix of benefits from the different underlying instruments they are associated with. For example, a structured note could resemble a bond but have its interest rate linked to the performance of an underlying commodity.
The savings element in cash value life insurance represents the portion of the policy that accumulates value over time, which policyholders can potentially access through withdrawals or surrenders. It functions both as a savings and investment vehicle.
A Unit Investment Trust (UIT) is an investment vehicle registered with the SEC under the Investment Company Act of 1940. It purchases a fixed portfolio of securities, which may include corporate, municipal, or government bonds, mortgage-backed securities, common stock, or preferred stock.
