Meaning & use
fixed trust
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Meaning
nouncountablefinancebusiness
a type of investment fund where the portfolio of assets is fixed and not actively managed
Grammar: Countable: use 'a fixed trust' or 'fixed trusts'.
Patterns
- invest in a fixed trust
- set up a fixed trust
The investor put her money into a fixed trust to avoid management fees.
A fixed trust holds a set list of shares that rarely changes.
Fixed trusts are less flexible than managed funds.
Word forms
| plural | fixed trusts |
|---|
Common combinations
- invest in a fixed trust
- He decided to invest in a fixed trust for steady income.
- a fixed trust fund
- The charity established a fixed trust fund for scholarships.
- set up a fixed trust
- They set up a fixed trust to hold the family assets.
Synonyms and how they differ
- unit trust
- A unit trust is a broader term for a pooled investment; a fixed trust is a specific type with a static portfolio.
- closed-end fund
- Similar in having a fixed number of shares, but a closed-end fund is traded on an exchange, while a fixed trust may not be.
Opposites
Word family
Commonly confused: fixed trust or fixed interest?
fixed trust vs fixed interest
Fixed interest refers to a constant interest rate, while a fixed trust is a type of investment fund.
Practice
A ______ is an investment fund with a portfolio that does not change.
Choose one answer.
‘Fixed trust’ is the correct term for an investment fund with a static portfolio. ‘Fixed interest’ is a rate, ‘fixed asset’ is a long-term asset like property, and ‘fixed cost’ is a business expense.
Make it your own
Write a sentence using “fixed trust”, then check it and compare it with the examples above.