This research paper conceptualizes the concept of “trust” and the trustee’s powers with regard to investments in different mutual funds or investment schemes for the beneficiary’s income or capital growth, which should be in accordance with the trust agreement. The ability given to a trustee to choose investments on behalf of a trust is referred to as investment powers of a trustee. The basic goal of a trustee’s investing powers is to make sure that trust assets are handled wisely to satisfy the needs of the beneficiaries. The trust and its beneficiaries may receive significant financial rewards from a trustee’s investment decisions. However, it is essential to critically analyze these benefits and weigh them against the potential risks and drawbacks. Trustees must exercise due diligence in selecting and monitoring investments, avoid conflicts of interest, and ensure that their investment decisions align with the trust’s objectives and interests. By doing so, trustees can enhance the trust’s overall returns and ensure that it remains a reliable source of financial support for its beneficiaries over the long term. Lastly, the legislations introduced in India, United Kingdom and the United States govern such aspects pertaining to trust and the financial benefits accrued namely The Indian Trust Act, 1882, Trustees Act, 1925, The Uniform Probate Code, 1969 and the Uniform Trust Code, 2000 amongst others which in the limelight of landmark cases such as Vishwanath Pandurang Awati and others v. State of Maharashtra[i], Bombay Environmental Action Group and Others v. Union of India and Others[ii], Cowan v Scargill[iii] and Bartlett v Barclays Bank[iv] help analyse the respective legislations.
[i] Vishwanath Pandurang Awati and others v. State of Maharashtra, AIR 1977 SC 1329.
[ii] Bombay Environmental Action Group and Others v. Union of India and Others, AIR 1997 SC 2047.
[iii] Cowan v Scargill, [1985] Ch 270
[iv] Bartlett v Barclays Bank, [1980] 1 Ch 515.
