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Term trust |
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Term trustA closed-end fund that has a fixed termination or maturity date.Term trust Similar MatchesUnit trustUnit trustUnit trusts are collective funds which allow private investors to pool their money in a single fund, thus spreading their risk, getting the benefit of professional fund management, and reducing their dealing costs.Features of unit trusts:They are open-ended which means that the trust can issue new units in response to demand. This means that unit trusts trade at their net asset value - that is the value of their underlying assets divided by the number of units in issue. Contrast this with investment trusts, which are closed funds. Their share prices are affected by market forces and often trade at a substantial discount to net asset value.Different trusts have different investment objectives. Some invest for income, some for growth. Some invest in small companies, some in large. Some invest in the UK, some in other territories. As an investor you can choose the trust that matches your interest and objectives.Investment decisions are made by professional fund managers appointed by the trustees. These managers make annual charges.Every day the trustees compute the value of the trust, divide it by the number of units in issue, and produce a bid and offer price based on that calculation. Unfortunately, when you invest in a unit trust, you usually never know the price you will be charged for units until the next valuation point, typically midday the following day.Unit trusts are well suited to regular savers who want to drip-feed money into the market every month. With unit trusts, you can invest as little as £50 per month, averaging the acquisition cost of your shares over many months.Many unit trusts make an initial charge when you invest, and their management charges are deducted from fund income. Bank trust departmentBank trust departmentBank department that deals with estates, administers trusts, and provides services such as estate planning advice to its clients. Revisionary trustRevisionary trustAn irrevocable trust that becomes a revocable trust after a certain amount of time. Qualified plan or trustQualified plan or trustA tax-deferred plan allowing employer and employee contributions that build up savings, which are paid out at retirement or on termination of employment. Tax is paid only when amounts are drawn from the trust. Discretionary trustDiscretionary trustIn the context of mutual funds, refers to a mutual fund or unit trust whose management decides on the best way to use the assets without restriction to a specific type of security. In the context of trusts, refers to a personal trust in which a trustee has the power of decision as to how much income or principal each beneficiary receives. Further SuggestionsTrust Indenture Act of 1939Trust deed Unit investment trust Nondiscretionary trust Resolution Trust Corporation (RTC) Trustee Irrevocable trust Equipment trust certificates Fixed trust accumulation and maintenance trust D Declaration Of Trust All inclusive Trust Deed (wrap around mortgage) Grantor Retained Income Trust (GRIT) Trust fund transaction Marital trust Voting trust certificate Collateral trust bonds investment trust Equipment Trust Certificate trustee real estate investment trust approved investment trust enterprise zone trust Finite Life Real Estate Investment Trust (FREIT) Association of Investment Trust Companies |
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