Fixed Investment Trust (Noun)
Meaning
An investment trust that can buy only those securities listed when the trust was organized.
Classification
Nouns denoting possession and transfer of possession.
Examples
- A fixed investment trust is a type of investment trust that can buy only those securities listed when the trust was organized, limiting its ability to adapt to changing market conditions.
- The fixed investment trust was established with a specific portfolio of securities that cannot be altered, providing a predictable return for investors.
- Investors who prefer a low-risk investment option may consider a fixed investment trust, which can provide a stable source of income.
- The fixed investment trust was created to track a specific index, but its fixed portfolio means it cannot rebalance or adjust to changes in the market.
- A fixed investment trust can be attractive to investors who want to avoid the costs and risks associated with actively managed investment portfolios.