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What are investment trusts?
Investment trusts do have a slightly more complex structure than unit trusts or open-ended investment companies (OEICs), but therein lies the opportunity for those investors who take the time to understand them. The effort can be very rewarding!
Structure and differences
Most investors will have at least some element of their portfolios invested in funds. The concept is simple. An investor will join many other investors in pooling their money and, in effect, giving it to a fund manager to invest. Such an approach is sensible – it means investors can access a diversified portfolio and so lower risk, whilst the costs are lower because they have been shared.
Most funds are unit trust or OEICs – both being ‘open-ended’. ...
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