Phone:01570 423 823 | post@cyfri.co.uk
Investment Trusts
Investment Trusts
An Investment Trust also works in a similar way to Unit Trusts and OEICs, with the major difference being that Investment Trusts are companies listed on the London Stock Exchange whose sole purpose is to invest their shareholders funds in shares of other companies or securities.
An investment trust is a collective type of investment, as it pools together the funds of investors in order to make investments in a range of companies. Investment trusts are based upon a fixed amount of capital which is divided into shares. This makes them closed ended, unlike the open ended structure of unit trusts. Once the capital has been divided into shares, investors can then purchase the shares. Another major difference between investment trusts and unit trusts is that investment trusts can borrow money for their investments (known as 'gearing up') whereas unit trusts cannot.
Investment trusts can also invest in unquoted or unlisted companies, which may not be trading on the stock exchange, either because they don't wish to or because they do not meet the given criteria. This ability, combined with the ability to borrow money for investments, can make investment trusts more volatile.
Levels and bases of and reliefs from taxation are subject to change and their value depends on the individual circumstances of the investor.
The value of your investment can go down as well as up and you may not get back the full amount invested.
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Company address: Cyfri Cyfyngedig - 23 College Street, Lampeter, Ceredigion, SA48 7DY
T: 01570 423 823
F: 08709 223 296
Email: post@cyfri.co.uk
Registration address as company address
Registration number: 03925755
Registered in: Wales
For Investment Planning we make recommendations based upon the Whole of Market.
The levels, bases and reliefs of taxation are subject to change.
The guidance provided within this website is subject to the UK regulatory regime and is, therefore, primarily targeted at consumers based in the UK. This site does not confer any form of personalised financial advice, should you wish to receive specific financial advice please contact us.
Cyfri Cyfyngedig is an appointed representative of The M&E Network Ltd, which is authorised and regulated by the Financial Services Authority. The M&E Network Ltd is entered on the FSA register under reference 150643.