Investment trusts

Introduction| Course| Q&As | Recommended reading| Quiz |

Introduction

Context

Investment trusts are companies which use their shareholder's capital to invest in other companies. They are a type of collective investment, and, like unit trusts, their attraction is that shareholders get the benefits of diversification and professional management. But in other ways, particularly in pricing, they are very different from unit trusts. This course explains those differences, and should help you decide whether ITs are for you.

Prior knowledge required

None. The basic concept of ITs is straightforward.

Contents

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

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