Unit trusts and open-ended investment companies
Sharing many traits, but also having important differences Pooled investment funds are usually large funds built by aggregating relatively small investments from individuals. A professional fund manager (or a team of fund managers) determines which assets to invest in and then purchases accordingly. They are also known as ‘collective investment schemes’.
Investment trusts
Seeking value everywhere An investment trust is a public company that raises money by selling shares to investors, and then pools that money to buy and sell a wide range of shares and assets. Different investment trusts will have different aims and different mixes of investments.
Individual Savings Accounts
Minimising the amount of tax you pay on your investment returns Individual Savings Accounts (ISAs) are a ‘tax-efficient wrapper’ enabling you to minimise the amount of tax you pay on your investment returns. Some ISAs give you instant access to your money and can be used to plan your finances for the short term.