What is an investment trust?
A strange language is spoken on Planet Finance. It often seems designed to baffle the average investor, and save the richest pickings for the professionals. Take, for example, ‘investment trusts’ — they’re investments, certainly, but they are not trusts. And since blind faith is the last thing to invest in any money-making exercise, the two terms make an odd pairing. The most important decision an average investor has to make is to trust their money with a good manager in a promising sector. And this is the main attraction of Investment Trusts. If you fancied a bet on Japan, for example, your first thought may be a straightforward fund, like Fidelity’s Japan Fund, with a 1.5 per cent annual management fee.
