We occasionally recommend investment trusts where we believe them to be appropriate.

An investment trust is simply a limited company whose business is to make investments.  It differs from a unit trust in that its shares are bought and sold on the stock market, just like any other individual company shares.  This means that if you want to cash in your investment, you must find another investor in the market who is willing to take them off your hands.

This makes them more volatile and therefore riskier than unit trusts.  However, they tend to have lower charges, and, in the case of income producing funds, tend to pay higher dividends than unit trusts.