Investment Trusts
What are Investment Trusts?
Investment Trusts are companies that invest in the shares of other companies on behalf of investors. Investor's money is taken and pooled together by a professional fund manager who will then purchase stocks and shares in a wide variety of companies.
There are similarities between Investment Trusts and Unit Trusts, however one important difference is that an Investment Trust Manager is legally allowed to borrow capital to purchase shares. This means that although there is a greater chance of potential return, there is also a increased element of risk.
| Five Key Benefits of Investment Trusts with Halifax Share Dealing |
| 1. Professional Fund managers can invest in many more shares than most people could practically invest themselves. |
| 2. Investment trusts are designed as a long term investment. If shareholders sell their shares, the shares will be bought by other investors within the stock exchange. |
| 3. A board of directors form an independent group which monitors the activity of the investment trust. They objectively review the costs and performance of each trust. |
| 4. Any transactions by the Investment Manager within the investment trust are exempt from Capital Gains Tax. However you (the investor) could be liable to pay tax if you make a gain and reached the CGT threshold. |
| 5. Track the performance of your chosen investment trust by using our Market Research Centre. |
Which accounts can I hold Investment Trusts in?
Share Dealing Account - the simple way to trade investment trusts
Self-Select Stocks & Shares ISA - our award-winning tax-efficient investment product
SIPP - Take control of your pension.
Next Steps
Apply Now for an account
Transfer your investments held with another broker to us
