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Find out how investment trusts can help you invest in a wider range
of assets than other funds.
Investment trusts can invest in just about anything. This is possible because of a difference in the way they are structured compared to other types of fund.
Why can investment trusts invest in a wider range of assets?
It comes down to their structure. Investment trusts have a 'closed-ended structure', which means they do not have to sell assets when investors sell shares in the trust. That means they can invest in assets that are hard to buy and sell quickly (these are known as 'illiquid assets').
What kinds of assets can investment trusts invest in?
As well as investing in mainstream stocks and shares (called equities), investment trusts also invest in private companies (private equity), infrastructure, renewable energy assets, property and debt. Often, investment trusts are the only way for ordinary investors to access these sorts of investments.
Why would I want to invest in a wider range of assets?
Investing in a wider range of assets can help you diversify your portfolio, or provide higher levels of income and/or growth. It can come with more risk though, so make sure you understand what you are investing in.
Investment trusts were created in 1868 to give ordinary investors access to investments they couldn't get on their own. More than 150 years later, the mission is still the same, but the range of available investments has expanded hugely.
Nick Britton, Research Director of the AIC
The benefits of diversification
Investment companies allow you to invest in a portfolio of diversified assets, avoiding the risk of having all your eggs in one basket. Watch this video to learn more about diversification.
Infrastructure investment companies
Find out how investing in roads, schools and railways helps produce attractive returns and grow the economy.
What is private equity?
Interested in finding out about investing in private companies? Private equity fund managers explain how they help companies grow while aiming to generate good returns for their investors.
Renewable energy investment companies
Managers explain how wind farms, solar parks and energy storage are benefiting investors and the environment.
Venture capital trusts
Interested in backing exciting new UK companies and earning tax relief? Learn all about VCTs in our easy-to-read guide.
Sector research
Access third-party research into different investment trust sectors (not endorsed by the AIC).
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More benefits of investment trusts
Protecting your interests
Learn how the independent board of an investment trust looks out for you, the shareholder.
