Unit trusts are pooled investments managed by professionals, where investors buy units rather than individual shares, and the value of these units fluctuates based on the performance of the underlying assets. The costs associated with unit trusts include Total Investment Charges (TIC), which encompass the Total Expense Ratio (TER) and Transaction Costs (TC), and may also include initial and performance fees, all of which are disclosed in the Minimum Disclosure Document (MDD).