fixed investment trust
- noun
- Specialized
:
fondo de inversión fijo
- The portfolio of a fixed investment trust does not change after the initial selection of securities.
Examples
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Unlike mutual funds, a fixed investment trust cannot actively trade its investments.
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Many conservative investors prefer a fixed investment trust because of its transparent structure and predictable holdings.
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The fixed investment trust provides stable returns.
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Many investors prefer a fixed investment trust for its predictability.
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Many conservative investors prefer a fixed investment trust because it offers a steady portfolio without active trading.
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The portfolio of a fixed investment trust remains unchanged after the initial securities are selected.
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Investors often choose a fixed investment trust for its reliable and predictable financial returns.
Synonyms
A company that pools money to buy a set of stocks and bonds, with shares investors can sell back
An investment that must hold only the stocks and bonds chosen when it was set up
How Active
- Specialized
86
6.3
- Specialized
82
3.5
- Specialized
7
4.8
- Specialized
Surface Forms
Morphology
fixed + investment + trust
The overall meaning is directly built from the constituents: 'fixed' (unchanging), 'investment' (committed assets) and 'trust' (a legal vehicle holding assets), so a learner who knows those words can infer a trust whose investments are set and not changed. Although the term is technical financial jargon, its semantic composition is transparent and predictable from the parts.
Etymology
Fixed investment trust comes from the idea of the words fixed, investment, and trust — imagine someone putting chosen investments into a locked box and not opening it again. So the name shows that the portfolio is set at the start and 'does not change'.