Trust Investment

A trust is a right in property, which is held in a fiduciary relationship by one party for the benefit of another. The trustee holds title to the trust property, and the beneficiary receives the benefits of the trust. A trust can be created during a person’s lifetime and survive the person’s death or by a will and formed after death. The assets held or inputted into the trust, belong to the trust itself, not the trustee, and are subjected to the rules and instructions of the trust contract. 2 major types of trust are:

  • Revocable Trusts: Created during the lifetime of the trust maker and can be altered, changed, modified or revoked entirely. Often called a living trust, these are trusts in which the trust maker transfers the title of a property to a trust, serves as the initial trustee, and has the ability to remove the property from the trust during his or her lifetime. Although useful to avoid probate, a revocable trust is not an asset protection technique as assets transferred to the trust during the trustmaker’s lifetime will remain available to the trustmaker’s creditors. It does make it more somewhat more difficult for creditors to access these assets since the creditor must petition a court for an order to enable the creditor to get to the assets held in the trust.
  • Irrevocable Trust: An irrevocable trust is one which cannot be altered, changed, modified or revoked after its creation. Once a property is transferred to an irrevocable trust, no one, including the trust maker, can take the property out of the trust.

Some other forms of trusts are:

  • Charitable Trust: Charitable trusts are trusts which benefit a particular charity or the public in general. A charitable remainder trust (CRT) funded during the grantor’s lifetime can be a financial planning tool, providing the trust maker with valuable lifetime benefits.
  • Constructive Trust: A constructive trust is an implied trust. An implied trust is established by a court and is determined from certain facts and circumstances.
  • Religious Trust: These trusts are established for religious purposes and for the benefit of people having faith in such religious activities
  • Children Beneficiary Trusts: As the name suggests, these trusts are for the benefit of the child of the trust maker and is in place till the purpose of the trust, i.e. the benefit of anf for the child holds.
Trust Approved Schemes
Birla Sun Life 95 Fund Birla Sun Life Advantage Fund
Birla Sun Life Cash Manager Birla Sun Life Cash Plus
Birla Sun Life Equity Fund Birla Sun Life Gilt Plus – Liquid Plan
Birla Sun Life Gilt Plus – PF Plan Birla Sun Life Income Plus
Birla Sun Life MNC Fund Birla Sun Life Monthly Income Plan
Birla Sun Life New Millennium Fund Birla Sun Life Tax Relief 96
Canara Robeco Liquid Canara Robeco Monthly Income Plan
Canara Robeco Equity Tax Saver Canara Robeco Gilt PGS
DSP BlackRock Bond  Fund HDFC Income Fund
ICICI Prudential Balanced Fund – Regular Plan ICICI Prudential FMCG Fund – Regular Plan
ICICI Prudential Gilt Fund – Investment Plan – PF Option – Regular Plan ICICI Prudential Gilt Fund – Treasury Plan – PF Option – Regular Plan
ICICI Prudential Income Plan – Regular Plan ICICI Prudential Liquid Plan – Regular Plan
ICICI Prudential Monthly Income Plan – Regular Plan ICICI Prudential Tax Plan – Regular Plan
ICICI Prudential Technology Fund – Regular Plan IDFC Super Saver Income Fund – Investment Plan – Regular Plan
IDFC Super Saver Income Fund – Medium Term Plan – Regular Plan Kotak Bond – Plan A
Kotak Gilt Investment – Regular Plan Kotak Liquid – Plan A
Reliance Income Fund Reliance Vision Fund
SBI Magnum Balanced Fund SBI Magnum Equity Fund
SBI Magnum InstaCash Fund SBI Magnum Multiplier Fund
SBI Magnum Taxgain Scheme Tata Ethical Fund – Regular Plan
Tata Long Term Debt Fund UTI Balanced Fund
UTI Bond Fund UTI CRTS 81 Fund
UTI Equity Fund UTI Equity Tax Savings Fund
UTI Mastershare Fund UTI Monthly Income Scheme
UTI MNC Fund UTI Money Market Mutual Fund – Institutional Plan
UTI Pharma & Healthcare Fund UTI Nifty Index Fund
UTI Treasury Advantage Fund – Institutional Plan Franklin India Dynamic Accrual Fund
Franklin India Government Securities Fund – Composite Plan  Franklin India Government Securities Fund – Long Term Plan
Franklin India Index Fund – NSE Nifty Plan Franklin India Low Duration Fund
Franklin India Monthly Income Plan Templeton India Growth Fund