An Investment Trust is a company quoted on the London Stock Exchange which invests shareholders' funds in the shares of other companies.  In a similar manner to unit trusts and OEICs, this allows greater diversification and access to professional fund management.

Unlike unit trusts and OEICs, an investment trust cannot create new units to satisfy increased demand, or cancel units where demand is low and there are a large number of investors selling their holding.  As with other company shares, this means that the price of the share can trade at a premium to the actual value of the underlying investments, or at a discount.

Investment trusts can also borrow money to invest which can increase the potential returns in good market conditions but magnify the losses in a market downturn.