Top Investment Trusts Your Guide to Smart Investing
Understanding Investment Trusts
Investment trusts, also known as closed-ended investment companies, offer a compelling alternative to open-ended funds (unit trusts or mutual funds). Key differences lie in how they operate. Unlike open-ended funds, which issue and redeem shares continuously based on demand, investment trusts have a fixed number of shares. This fixed capital structure can offer advantages in certain market conditions, particularly during periods of market volatility. They also tend to have a more active management style than many index trackers.
The Appeal of Investment Trust Diversification
One of the major attractions of investment trusts is their ability to offer