Securities trusts (specified money trusts, fund trusts)

Securities trusts are established primarily for the purpose of investing cash in securities, and they include specified money trusts and fund trusts used by financial and other institutions as a method of investment.

Specified money trusts

A trust where the settlor specifies the investment method for the trust property is called a specified money trust. The settlor specifies the issues, number of shares and their value, and such matters when the trust invests in securities.

Fund trusts

When securities are the main trust property and the purpose of investment is to make money, the settlor designates the scope of the investment, and the trustee (trust banks and other institutions) invests within this scope. Money is accepted as trust property when the trust is underwritten, and the trust property is paid to the beneficiary at the end of the trust in the form of the invested trust property (e.g., securities).