investment-trust

Vocabulary Word

Definition

An 'investment trust' is a company that uses the pooled funds from its shareholders to invest in a diversified portfolio of assets. These could include stocks, bonds or property. The value of the trust rises and falls based on the success of these investments.

Examples in Different Contexts

In Asset Management, an 'investment trust' is a form of collective investment that allows investors to pool their money to invest in a diversified portfolio of assets. An asset manager might say, 'Investment trusts offer a way to gain exposure to a wide range of investments, often with professional management.'

Practice Scenarios

Business

Scenario:

Over the past five years, our firm's growth-fund has yielded satisfactory returns. The team is now contemplating expanding our investment portfolio.

Response:

Considering our strong performance, establishing an investment trust may be an effective way to diversify our offerings.

Creative

Scenario:

The production costs for our upcoming project will be substantial. We need to think about secure funding strategies.

Response:

What about forming an investment trust focused on creative projects? It could fund these high-cost productions.