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 mutua
