Meaning & use

fixed trust

noun·Advancedfinancebusiness

Last updated

UK/ˌfɪkst ˈtrʌst/
US/ˌfɪkst ˈtrʌst/

Meaning

  1. 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

pluralfixed 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

managed trustdiscretionary trust

Word family

trust noun
a legal arrangement where one party holds assets for another
trustee noun
a person who manages a trust

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.

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