Mutual fund companies
Mutual funds raise funds from investors, pool the money and invest in stocks, bonds and other investments. Investors own shares that are proportionate to the amount of their investment. Mutual funds offer small investors the advantages of diversification and professional management.

  1. Structure
    Mutual funds are operated by investment companies that hire a professional investment manager to oversee the fund. Investors are charged a management fee.
  2. Regulation
    Mutual funds are regulated under the Investment Company Act of 1940, which requires them to register with the Securities and Exchange Commission.
  3. Money Market Mutual Funds
    These serve as an alternative to a bank deposit account that invests in short-term notes of high denomination and high quality. They often pay a higher rate of return than bank account. Unlike bank deposits, money market mutual funds are not insured even though they are regarded as risk free.

Trust companies
A trust company is a legal entity that acts as fiduciary, agent or trustee on behalf of a person or business entity for the purpose of administration, management and the eventual transfer of assets to a beneficiary.

The entity acts as a custodian for trusts, estates, custodial arrangements, asset management, stock transfer, beneficial ownership registration and other related arrangements. A trust company does not own the assets its customers assign to its management, but it may assume some legal obligation to take care of assets on behalf of other parties.

A trust company or trust department is usually a division or an associated company of a commercial bank. Trust companies often offer investment management and estate planning services.

Trust companies are regulated under state law.


Introduction

Related Articles
  1. Retirement

    How To Set Up A Trust Fund In Australia

    No, they're not just for the super-rich. But you need to know the rules.
  2. Markets

    Unit Investment Trusts Market: 3 Trends in 2016

    Learn more about unit investment trusts (UITs), and discover some of the most common trends in the UIT market to date in the year 2016.
  3. Managing Wealth

    Surprising Uses for Trust Funds

    Here are five common situations where a trust fund makes financial sense.
  4. Retirement

    How To Set Up A Trust Fund In The U.K.

    A guide to the whys and wherefores of setting up this most versatile of estate-planning instruments in the United Kingdom.
  5. Retirement

    How to Set Up a Trust Fund in Canada

    You don't have to be rich to make use of a trust fund. Rules can be complex; here's what you'll need to discuss with your lawyer.
  6. Retirement

    A Brief History Of The Mutual Fund

    This popular investment vehicle has seen its share of ups and downs, successes and scandals. Read all about it!
  7. ETFs & Mutual Funds

    Mutual Funds

    What mutual funds are: Professionally managed pools of stocks, bonds and/or other instruments that are divided into shares and sold to investors. Pros: Diversification; liquidity; simplicity; ...
  8. Managing Wealth

    What's a Trust?

    A trust is a fiduciary relationship in which one party gives another party the right to hold property or assets on behalf of a beneficiary.
  9. Financial Advisor

    How Trust Funds Can Safeguard Your Children

    Certain types of trust funds can help to protect your assets from bankruptcies and civil actions, and can be established to safeguard your children and designated beneficiaries.
  10. ETFs & Mutual Funds

    4 Mistakes to Avoid When Choosing Mutual Funds to Invest in

    Mutual funds are a great way to build wealth but not all of them are the same. Investors have to be mindful of fees, turnover, redundancy and performance.
Trading Center