Investment Trusts
You may have heard the term investment trust, you may have even looked at buying investment trusts but what can they do for you? What exactly have they got to offer?
Think of an investment trust as a pool of money for fund mangers to invest into the market, and each share in an investment trust offers you a share in the overall pool. When the investments do well the share price moves higher, when the overall fund does badly you will see the share price move down. However, this is where the options start to open up and can confuse some people.....
If you are looking at any particular market, any particular country or any particular investment risk class there will be an investment trust for you. Investment strategies take in everything from the Brazilian market, to the technology market, income investments as well a balanced approach. They are attractive to investors because they offer an exposure that many investors would not be able to gain - do not forget that you have a slice of these multi-million pound funds which might have 40, 50 or more investments.
The average private client investors would not be able to achieve that diversity with for example a few hundred pounds or even a few thousand.
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