An introduction
Investment companies are a type of collective investment which allows you to spread your risk and access investment opportunities that you wouldn’t be able to invest in on your own.
There are around 400 investment companies, many of which have existed for more than 50 years. They include:
Investment trusts
Offshore investment companies
Venture Capital Trusts (VCTs)
Be prepared to hold onto your investments for the long term.
Investment companies are a type of collective investment fund. A collective investment fund is an investment vehicle where a group of investors pool their money and invest in a portfolio of assets to spread risk.
Investment companies are primarily intended as long-term investments and can be higher risk. You should be prepared to hold them for at least 5 years, and preferably 10 or more. You should not invest money that you cannot afford to lose.
