Investment Trusts

Investment Trusts invest in the shares of different companies, allowing investors to spread their risk. The main difference from unit trusts is that investment trusts are themselves companies in which you buy shares. So you're investing directly, rather than indirectly through an open-ended fund. Because investment trust share prices are affected in part by supply and demand, their value can fluctuate more often than units in unit trusts.

As with unit trusts, investment trusts differ in the kinds of companies they invest in - some being more 'high risk' than others. Some focus on capital growth with very little income from dividends, and others invest for a steady income from dividends with some chance of capital growth.