A quoted company, that invests in the shares of other companies, they are closed ended funds; raising money initially when it issues shares. Though as a company they can borrow to provide gearing, invest in a wide range of securities (listed and unlisted) and can hedge against currency risk.

As an investor money is pooled and it enables exposure to a diverse range of companies probably not practically accessible for individuals. These could be in a specific region, specialist sector or emerging market. It also spreads risk and allows investors to benefit from the investment expertise of professional fund managers. Ring 0845-6756749 or clicking here now for trusted investment advice.