Some companies invest generally while others specialise, either in income or growth shares or in particular sectors, countries or world regions. Some specialise in fixed interest investments.

A newly introduced category global recognises the trend towards a world wide approach to investing, picking out what are thought to be the best companies world wide, perhaps restricted to a sector (especially high tech stocks). In any case, many large companies have significant operations extending beyond their national boundaries.

The share price is usually at a discount to the market value of the underlying investments (the net asset value or NAV) and the percentage discount varies from time to time as well as between individual Investment Trusts at any one time. In recent times discounts have been as high as 10% and as low as 2%. Occasionally the share price is at a premium to the net asset value.

Investment Trusts can borrow money to invest. This is called gearing because the opportunity for growth and/or income increase is geared up. It does of course also increase the risk of loss.

The cost of managing the investments is a charge against profits.

Eighty five per cent of income must be paid out.

Information about Investment Trusts can be obtained from the Association of Investment Trusts.

----
If you need to borrow money, http://www.homeloansonline.org.uk provides a quick and easy application form. Get all the options clearly explained to you and then choose. Ideal for people looking for a bad credit debt consolidation loan