Fund Basics

How is a fund different from a discretionary investment account or a trust?

A fund pools money from multiple investors into a single collective investment vehicle, manages it, and shares out the results.

Discretionary investment management differs from a fund in that the investor and the firm sign an individual contract and ownership of the contracted assets remains with the investor. A trust is also distinguished from a fund in that it presupposes an individual fiduciary relationship between the settlor and the trustee.

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This answer is general financial information as of 2026.10.14, not investment advice. Rules and tax rates change, so please also check the latest guidance from the source institution.