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Income Trust

An income trust, also known as an income fund, is a type of trust that holds both debt and equity of an underlying active business or assets generating royalties. This structure allows for the efficient distribution of cash flow to unit holders on a monthly basis. Typically utilized by established, profitable businesses with low maintenance costs, income trusts function similarly to common shares and are traded on exchanges. The four categories of income trusts include business trusts, real estate investment trusts, energy trusts, and power, pipeline, and utility trusts.

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