What are Investment Trusts, Mutual Funds and Unit Trusts?

An Investment Trust is a company with a stock exchange quote that invests its shareholders money in a portfolio of shares in other companies.

In effect they are collective investment funds with a fixed capital and a fixed number of issued shares that are traded on a stock exchange.

As they have a fixed capital they are known as ´closed end´ trusts to distinguish them from Mutual Funds/Unit Trusts.

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