What kind of investments are allowed in a trust?
In the state of Hawaii, trust investments are typically limited to real estate, stocks, bonds, mutual funds, and certificates of deposit, such as savings accounts. In addition, trust investments may also include artwork, jewelry, antiques, or rare coins. Real estate investments are any form of land or buildings, such as residential, commercial, or agricultural property, and can also include vacation homes or investment properties. Stocks are a form of equity investment and can provide a steady stream of income through dividends, while bonds are debt investments that are typically less risky than stocks. Mutual funds are professionally managed investments that combine stocks, bonds, and other financial instruments, and are generally considered to be a lower-risk, but less profitable option. Certificates of deposits are also low-risk investments that are insured by the Federal Deposit Insurance Corporation (FDIC). In addition to conventional investments, trusts may also opt to invest in more exotic investments, such as artwork, foreign currencies, or even cryptocurrency. However, these types of investments are not typically recommended for novice investors, and trust holders should consider consulting a financial advisor before making any investments.
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