Unitholders are investors who own units in an investment trust or master limited partnership (MLP). A unit trust is an investment vehicle which pools funds from multiple investors and distributes the income amongst them based on their ownership of the units issued in the trust. An MLP is a tax-advantaged, publicly traded limited partnership that appeals to small investors because it pays regular distributions and usually offers capital appreciation potential.

At the most basic level, unit holders are owners of units in investment trusts and MTPs; they hold units that are issued to them by the trust or company which invests the pooled funds to generate a return. Unitholders are also legal investors in the entities themselves, and as such benefit from any profits generated by the investment trust or MLP.

Unitholders have voting rights, and are paid dividends, which are declared and paid at the discretion of the trustee, who determines the amount and timing of dividends based on the trust’s performance and the trustee’s discretion. Dividends are usually distributed on a quarterly basis, and often paid out as a percentage of net asset value. In addition, some trusts also offer unitholders the option of redeeming their units at any time, allowing them to take out their money at a given time.

When it comes to taxation, Unit holders are liable for taxes just as any other investor is. The income they receive is typically taxable as pass-through income, meaning the trust or MLP itself is not responsible for paying the taxes levied on the dividends or capital gains of the unitholders.

Unitholders must also be aware of any additional requirements of investment trusts and MLPs, such as their rights and obligations to the trust or partnership, as they are legally obligated to abide by these rules and regulations.

In summary, unitholders are owners of units in investment trusts, and benefit from any profits generated by the trust by receiving dividends. These dividends are declared according to the discretion of the trustee, and any income received is typically taxed as pass-through income, which is the responsibility of the unitholders. However, unitholders must also be aware of the requirements of investment trusts, as they can affect their income, voting rights, and other aspects of their ownership.