Definition

Noun: - A type of investment company: A fixed investment trust is a specific kind of investment trust or company. Its defining characteristic is that it is restricted to holding only the specific securities (like stocks or bonds) that were originally listed in its portfolio when the trust was first created or organized. It cannot freely buy new or different securities later.

Usage

This term is used in the context of finance and investing to describe a closed or restricted portfolio structure. - Investors seeking a predictable portfolio might choose a fixed investment trust. - Unlike a managed fund, the composition of a fixed investment trust does not change over time.

Advanced Usage

• "fixed trust": This is a common shortened form used in some financial contexts to refer to the same structure.
  • The fixed trust appealed to those who wanted to know exactly which assets they owned.

Variants and Related Words

• Unit investment trust (UIT): A related type of investment company that also typically holds a fixed portfolio of securities until a stated termination date. A fixed investment trust is often considered a type of UIT.
• Fixed portfolio: A general descriptive phrase for any investment fund with a set, unchanging list of holdings.

Synonyms

• Non-discretionary trust: (In a specific legal/financial sense) Emphasizes that the trustee has no discretion to change the investments.
• Static portfolio trust: A descriptive synonym highlighting the unchanging nature of the holdings.

Antonyms

• Managed investment trust / Managed fund: An investment trust where a portfolio manager has the discretion to actively buy and sell securities.
• Open-end fund (Mutual fund): A type of investment company that continuously issues and redeems shares and whose portfolio is actively managed and changes over time.

Noun

1. an investment trust that can buy only those securities listed when the trust was organized