We study the structure of the inverse limit of the graded algebras of local unitary invariant polynomials using its Hilbert series. For k subsystems, we show that the inverse limit is a free algebra and the number of algebraically independent generators with homogenous degree 2m equals the number of conjugacy classes of index m subgroups in a free group on k - 1 generators. Similarly, we show that the inverse limit in the case of k-partite mixed state invariants is free and the number of algebraically independent generators with homogenous degree m equals the number of conjugacy classes of index m subgroups in a free group on k generators. The two statements are shown to be equivalent. To illustrate the equivalence, using the representation theory of the unitary groups, we obtain all invariants in the m = 2 graded parts and express them in a simple form both in the case of mixed and pure states. The transformation between the two forms is also derived. Analogous invariants of higher degree are also introduced.
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