MyFinances.co.uk
News feeds Free newsletter

All the latest personal finance news - helping you make the most of your money

Savings & Investments glossary

Investment trusts

Investment trusts are companies quoted on the London Stock Exchange whose sole purpose is to manage the investments they own.

Typically an investment trust owns a fixed number of shares.

Investors can then buy shares in an investment trust, and benefit from increases in the value of the company and dividends from the shares it owns.

Effectively, buying shares in an investment trust means buying exposure to potentially hundreds of different shares.

As a trading investment company, investment trusts can borrow to provide gearing to buy more shares, invest in a wide range of securities, both listed and unlisted, and hedge risks.


Related articles 


Disclaimer:
myfinances.co.uk is not authorised to give advice under the Financial Services and Markets Act 2000.

Terms:
By using this site, you are deemed to have accepted our terms of use.

myfinances poll 

2009 is set to be a tough year for the UK finances. We want to know what you are expecting. Vote now.

Free stuff 

Sign up for our free daily newsletter and other free stuff.