Wed, 23 Jul, 2008

INVESTMENT TRUSTS

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What are Investment Trusts?

Investment trusts are companies that invest in the shares of other companies.
They pool investors' money and employ a professional fund manager to invest in the shares of a wider range of companies than most people could practically invest in themselves. This way even people with small amounts of money can gain exposure to a diversified and professionally run portfolio of shares, spreading the risk of stockmarket investment.
There are over 300 investment trusts responsible for the management of billions of pounds' worth of assets on behalf of investors.

Investment trusts have several benefits for investors.

Allow you to pool your money
Allow you to spread your risk
Use professional managers’ expertise
May have low charges
Allow you to invest small amounts
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