About investment trusts
A type of collective investment, investment trusts are public limited companies that invest in other companies in order to make a profit for their shareholders. Investment trust shares are bought and sold on the stockmarket so like any other public quoted company, the price you pay for shares in an investment trust is determined by the supply and demand for the shares.
Investing in an investment trust can be an effective and cost-efficient way to invest in the stock market.
The benefits
- Pooling your money
- Investment flexibility
- Spreading risk
- Professional management expertise
- Low charges
- Investment gearing
Pooling your money
When you purchase shares in an investment trust you pool your money with other investors money. This means you can benefit from the potential growth of the investment portfolio but it can also be a more economical way to invest as dealing and administration costs are pooled with other investors.
Investment flexibility
Shares can be purchased on the open market through a stockbroker or through a tax-efficient ISA. You can invest small lump sum amounts or even invest monthly from as little as £50 a month.
Spreading your risk
Investment trusts owns shares in a broad range of companies, so while you buy shares in only one investment trust, you invest in a diversified portfolio. This can help you spread the underlying risk of your investment.
Professional management expertise
Investment trusts are managed by professional fund managers who offer a high level of investment expertise in a variety of asset classes and with different income or growth profiles.
Low charges
The majority of investment trusts have low internal charges. Because investment trusts have an independent Board of Directors, whose role is to act in the best interests of shareholders, they will do what they can to ensure that the trust's internal charges are not excessive and that you are getting the most from your money from the moment you first invest.
Click here to find out more about Investment Trusts
Standard Life Investments Limited, tel. +44 131 225 2345, a company registered in Scotland (SC 123321) Registered Office 1 George Street Edinburgh EH2 2LL.
The Standard Life Investments group includes Standard Life Investments (Mutual Funds) Limited, SLTM Limited, Standard Life Investments (Corporate Funds) Limited and SL Capital Partners LLP. Standard Life Investments Limited acts as Investment Manager for Standard Life Assurance Limited and Standard Life Pension Funds Limited.
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