Looking at investment trusts in a different light

investment trusts

Many intermediaries opt for open-ended funds rather than investment trusts but they should consider these vehicles as they can offer tax advantages and a diverse investment

Investment trusts are public companies quoted on the Stock Exchange but unlike most companies their sole business is to invest in the shares of other companies. Investment trusts are closed-ended funds. This means they have a fixed number of shares in issue at any time, the prices of which will fluctuate according to supply and demand. These prices do not include the costs of buying and selling. Buying and selling of investment trust shares takes place through the stock exchange and anyone wishing to purchase shares ultimately buys from another shareholder willing to sell. Each investmen...