Investment trusts

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13. Conclusion

• Investment trusts serve a useful purpose for people who want to spread risk, minimise their dealing costs, and not worry about watching a whole basket of individual shares.
• They are particularly useful for people who want to invest in the stock market by making regular payments through a monthly savings scheme.
• You can buy shares in ITs from a stockbroker or an IFA or direct. Normal charges apply.
• Share prices of investment trusts rise and fall just like other companies, and the prices will not always follow the value of the trust's assets. When a trust persistently trades at a discount, it can be frustrating for investors, especially if the discount widens.
• Different trusts have different objectives. Some go for maximum income, some for capital growth. You need to carefully choose the trust that matches your needs, and check whether it has lived up to its aims in the past.

You have now completed the course. To test your knowledge, take the Assessment test.

1. What are investment trusts? 2. What does an IT do? 3. Difference from unit trusts 4. IT specialisation 5. Tax advantages 6. Discounts: the share price of ITs 7. Gearing 8. Split capital trusts 9. Warrants 10. Ways of investing in an IT 11. Factors to consider when choosing an IT 12. Where to find information about ITs 13. Conclusion