Investment Trusts
This is a closed company arrangement whereby funds are invested in other companies shares, fixed interest securities, property, cash deposits and, like OIEC and Unit Trusts, they spread the risk by investing in many different stocks and shares. The value of the Investment Trust moves up and down depending upon demand and supply and does not necessarily reflect the value of the investments owned. As a company, an Investment Trust has a facility to borrow which, together with the uncertainty of the value of the company depending upon demand, can make it a higher risk arrangement than a similar Unit Trust or OIEC.
