What instruments can be categorized as trust money investments?

Trust money investments refer to funds held in trust that must be invested prudently to generate a reliable return while ensuring the capital is preserved. Treasury bills and high-quality rated short-term debt securities fit this definition perfectly, as they are considered safe and low-risk investment options.

Treasury bills, issued by the government, are highly liquid and have a short-term maturity, making them ideal for trust accounts where liquidity and security are paramount. High-quality rated short-term debt securities, such as those rated investment grade by recognized rating agencies, also offer security and stability, thereby aligning with the fiduciary duty to safeguard the trust assets while generating returns.

On the other hand, equities and stocks, while potentially profitable, carry a higher level of risk and volatility, making them less suitable for trust money that requires a more cautious approach. Cryptocurrency investments involve significant speculation and risk, which does not align with the conservative investment principles typically necessitated by trust funds. Similarly, venture capital funds, although they can yield high returns, are illiquid and involve significant risks associated with backing startups and private companies, making them unsuitable for trust money investments.