What is the difference between a trust fund and a mutual fund?

What is the difference between a trust fund and a mutual fund Introduction: Navigating the Financial Landscape Hello and welcome! In today's video, we'll be exploring the intricacies of trust funds and mutual funds. While both are investment tools, they differ significantly in their structure, purpose, and accessibility. So, let's dive in! Defining Trust Funds: A Closer Look Trust funds are established to safeguard and manage assets for beneficiaries. Often created as part of estate planning, they ensure the controlled distribution of wealth over time. Trust funds are overseen by trustees who act in the best interest of the beneficiaries, making investment decisions on their behalf. These funds typically have a specific purpose, such as education or healthcare, and can be tailored to meet the unique needs of the beneficiaries. Mutual Funds: The Collective Investment Approach In contrast, mutual funds pool money from multiple investors to create a diverse portfolio of stocks, bonds, or other securities. Managed by professional fund managers, these funds offer individuals the opportunity to invest in a wide range of assets, even with limited capital. Mutual funds are designed to provide investors with the benefits of professional management, liquidity, and the potential for long-term growth. Accessibility and Entry Requirements