I've seen people talk about Trusts quite often, but I still don't quite understand what types of Trusts there are and how they differ from REITs or mutual funds. Today, let's clarify that a bit.

In fact, Trusts and REITs are more closely related than you might think. A REIT is a type of Trust, but Trusts are broader. Why is that? Because Trusts can manage a variety of assets, including funds, real estate, stocks, bonds, and even businesses. In contrast, REITs are limited to investing only in real estate.

To understand what types of Trusts exist, you need to know that a Trust is a legal tool for asset management, where a trustee (manager) is appointed to receive assets transferred from the owner, manage them, and distribute the returns to beneficiaries. The parties involved are three: the settlor, the trustee, and the beneficiaries.

The difference between Trusts and Funds is clear. Funds are legal entities, but Trusts are not. Additionally, Funds must be registered and approved by authorities, whereas Trusts are formed through agreements between involved parties, making them more flexible.

Thailand allows two types of Trusts: Active Trusts, which are managed to generate benefits (such as REITs or II/HNW Trust Funds), and Passive Trusts, which are used to oversee assets for specific purposes (such as ESOP or EJIP).

It seems that Trusts can be quite diverse. Currently, most ordinary investors access Trusts through REITs because they are familiar and asset verification is straightforward. Even beginners can buy and sell them. If you're interested in investing in large assets but don't have much capital, REITs are an attractive option.