What is the difference between a trust fund and an endowment fund?

What is the difference between a trust fund and an endowment fund Introduction: The World of Financial Instruments Hello everyone, and welcome to our video. Today, we're going to explore the fascinating world of trust funds and endowment funds. These financial instruments play a crucial role in wealth management and investments. While they may seem similar at first glance, they have distinct features that set them apart. So, let's dive in! Defining Trust Funds: A Closer Look Trust funds are established to hold and manage assets on behalf of beneficiaries. They are often created for specific purposes, such as providing for a child's education or supporting a charitable cause. The assets in a trust fund can include cash, stocks, real estate, or any other valuable asset. A trustee, who can be an individual or an institution, is responsible for managing the trust fund and ensuring that the assets are used according to the terms set by the creator of the trust. Endowment Funds: A Different Perspective Endowment funds, on the other hand, are typically created by institutions, such as universities or non-profit organizations. The primary purpose of an endowment fund is to provide a sustainable source of income for the institution.