Investment Trusts
Like unit trusts and OEICs, investment trusts are pooled investments that bring together money from a number of investors.
INVESTMENT TRUSTS
However, this type of fund is run as a company and when you invest, you buy shares in it which are listed on the stock market.
This means the value of your investment is affected by the ups and downs of the market as well as the performance of the assets chosen by the fund manager.
While the number of units in a unit trust fluctuates, the number of shares in an investment trust is constant and if you want to cash in your investment you will have to sell your shares.
The cost of shares in an investment trust does not usually accurately reflect the value of the underlying assets – most trade at a discount to their real value.