Term Trust

Term Trust Whenever a fund has a fixed date where it will either be terminated or will become matured, it is called a term trust. In these situations, investors will have a little bit of security because they will know exactly when they can get the highest value for their fund. This is particularly common with bonds, as they will have a fixed maturation date where the value will not continue with its steady increase anymore. These are also called closed-ended funds, as they cannot be expanded for another term and the money must come out of the fund when the term ends.