Investment Trusts
An Investment Trust is a type of company that pools money from multiple investors to buy a diversified portfolio of assets, such as stocks, bonds, or real estate. Investors purchase shares in the trust, and the value of these shares fluctuates based on the performance of the underlying investments. This structure allows individuals to access a broader range of investments than they might be able to afford on their own.
Investment trusts are managed by professional fund managers who make decisions about buying and selling assets. They often trade on stock exchanges, similar to individual stocks, providing liquidity for investors. Additionally, many investment trusts pay dividends, offering a potential income stream for shareholders.