Common Trust Fund

Definition - What does Common Trust Fund mean?

A common trust fund is a gathering of assets managed by one entity for investment purposes. The fiduciary is often a financial institution such as the trust department of a bank.

Insuranceopedia explains Common Trust Fund

A common trust fund is regulated by the state unless it is among those federally chartered, which means that it is both overseen by the state and the national government. These types bear the acronym N.A., standing for "National Association."

The purpose of the common trust fund is to generate income from all the assets it has pooled. Only those with trust accounts can enter their assets into a common trust fund.

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