What is the difference between an investment trust, unit trust and investment fund?

investment fund is generally actively managed as per mutual funds for example. The investments are bought and sold in an attempt to obtain best results. However, with the advent of index funds, that is no longer the case. The investments are not actively managed except as they must be to match the index.

Unit trust is a set of investments, normally bonds, that are purchased, packaged, and pettled to the public as shares in the package. They are unmanaged.

Investment trust are a little more difficult to define. Basically they are like mutual funds in that they are pools of investments. Unlike mutual funds they are actively traded on the stock exchanges ie real estate investment trusts but not always. Some are not actively traded, but nevertheless they are pools of investments in which shares have been sold to the public. There are other kinds besides real estate investment trusts. Under a broad definition, hedge funds might be considered investment trusts for example. Perhaps even mutual funds. Certainly closed end funds would fall under that category.

Unit trusts have a number of units people can buy or sell in a selection of companies that their managers choose..........investment trusts are similar but can borrow money to give them gearing which gives a better performance in a bull market, often the shares held by the trust in total arent as maretable as the individual shares so for eg a trust holding shares in a b & c companies valued at 拢1 each would trade around 拢2.70 against the total of 拢3.00 this is called a discount in this simple eg a discount of 10% to the net asset value of 拢3.00.................quite often the costs on investment trusts are lower many companies like Foreign & Colonial have saving schemes wher you can invest a lump sum or make monthly payments.
Personally I like investment trusts they have been out of fashion for a while & are not advertised as much as the unit trusts of course someone has to pay for the fancy advertising........if you are new to investing I would suggest a general global fund, the link attached is a site that gives you the discounts & past performance......if you need any more advice contact me I do not work for any finacial company but do manage all my own investments.

Investment in unit trust is a high safe investment because its hold by trustee and fund is the products which offered by the fund manager.