Investment Trust Fraud

AN INVESTMENT trust is a company that makes money for its clients by investing their funds in other companies. Normally, the investor will select an investment trust on the basis of the company's specialization, with trust companies often specializing in communication companies, energy producers, or electronic commerce companies. The investment trust manager pools the money provided by various investors and then places the money into one fund. This allows customers the opportunity to invest in a wider range of companies than if they were investing on their own. Risk is also believed to be spread out because the pooled money is divided over several companies.

A final benefit of an investment trust is that investors can begin by investing small amounts, with low charges by the ...