What is Investment Trust?

An investment trust, or closed-end trust, is a financial enterprise that pools shareholder funds for investment in certain asset types that make up a diversified larger portfolio. Investment trusts differ from mutual funds or unit trusts because they represent real shares in a company itself, rather than units in each individual stock within the portfolio. The demand for investment trusts is often quite high because of the limited number of shares offered by the company providing the service. Most investment trusts have full control over the portfolio they invest in, which is subject to change through certain legal amendments.