What is the difference between Master Trust and mutual fund?

A Master Trust is a centralized investment vehicle that pools assets from various funds or investors to manage them collectively, often used by pension funds or institutional investors for better efficiency and cost-effectiveness. In contrast, a mutual fund is an investment vehicle that collects money from individual investors to purchase a diversified portfolio of stocks, bonds, or other securities, with the goal of generating returns for its shareholders. While both aim to pool resources for investment purposes, Master Trusts typically cater to larger institutional clients, whereas mutual funds are accessible to individual investors.