What are trust funds? mutual funds? what's their difference?

Answer 1

There is a huge difference.

A mutual fund is an investment portfolio where lots of people pool their money in order to buy a well diversified portfolio. Some people may put in a little while others may put in a lot. Each owns a piece tht is proportional to the amount they put in.

A trust fund is money governed by a legal contract where a really rich person puts aside part of his money for someone -- usually an underage child. The trustee (usually a law firm) then manages the money until the person comes of age. They often make decisions about what can be taken out of the fund before the person gets control.