Investment Trust

An investment trust, also known as a closed-end trust, is a financial entity that pools funds from shareholders to invest in diverse asset types, composing a broader portfolio. Investment trusts differ from mutual funds or unit trusts as they represent actual shares in the trust itself, rather than units in individual stocks within the portfolio. The limited number of shares offered by the trust often generates significant demand. Investment trusts generally possess full control over the portfolio, which can be subject to modification through legal amendments.