Putting money into Investment Trusts is a way of investing into a wide range of investments. This involves investing with many others and enables an individual to invest in an amount of investments that would normally be unfeasible for individual investors. It also helps spread risk because investors are not dependent on just one investment.There are over 430 Investment Trusts in the UK, where investors' money is pooled together and the fund manager will invest in the shares, securities or property. An Investment Trust is set up as a company, and its share price will be determined by the supply and demand for its shares on the stock market.

One of the key differences between an Investment Trust and a Unit Trust is that an Investment Trust manager is legally allowed to borrow capital to purchase shares. This is often referred to as 'gearing' because it has the effect of increasing the impact of a rise or a fall in the value of the trust's investments. If any investments bought with loans rise in value by more than the cost of borrowing, the trust can pay back the money borrowed and retain the profit. However, if the borrowing and interest costs that the trust has to repay are lower than the value of the investments, the trust makes a loss. Trusts that are more highly geared are generally considered to be a more risky option for investors.

There are a number of website where investors can find out information on the performance of Investment Trusts and the share price can normally be found in the Financial Times each day.

Investment Trusts can be invested in either individually through a stockbroker or as part of a savings or pension scheme. Most trust management companies produce comprehensive product brochures containing information on the different ways to invest in Investment Trusts and more information on the product features as well as the risks involved.

There is always a risk involved with any investment as the value can fluctuate greatly. However, putting money into an Investment Trusts can be one of the easiest and most cost-effective ways to invest in the stock market. With so many Investment Trusts available, it should be possible to find one that matches the level of risk that the investor wishes to take.