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 Retirement Planning, 'investment trusts' are often part of a diversified retirement portfolio, offering retirees a balanced mix of income and growth potential. A retirement planner might suggest, 'Including investment trusts in your retirement portfolio can help balance risk and provide regular income.'

Practice Scenarios

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.

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.