Help & FAQs

What is an Investment Trust?

Investment trusts are actually investment companies, quoted on the stock market, and whose purpose is to invest in the shares of other companies. Unlike unit trusts or OEICs they are "closed-ended" meaning there are a limited number of shares in issue. They usually trade at a discount (but sometimes a premium) to Net Asset Value, with the price being determined by demand for shares rather than the value of the fund.

Submitted on 10th Oct 2017

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Risk Warning

The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.

Selftrade does not provide investment advice. If you are in any doubt as to the risk or suitability of an investment or product you should seek advice from an independent financial adviser.

The extent and value of any ISA tax advantages or benefits will vary according to the individual's circumstances. The levels and bases of taxation may also change.

The extent and value of any SIPP tax advantages or benefits will vary according to the individual's circumstances. The levels and bases of taxation may also change. If your options change regarding an employer's pension scheme you may wish to review your financial situation. Once in a pension your money is only accessible, in general, from age 55.

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