<P> An investment trust is a form of collective investment found mostly in the United Kingdom . Investment trusts are closed - end funds and are constituted as public limited companies . In many respects, the investment trust was the progenitor of the investment company in the U.S. </P> <P> The name is somewhat misleading, given that (according to law) an investment "trust" is not in fact a "trust" in the legal sense at all, but a separate legal person or a company . This matters for the fiduciary duties owed by the board of directors and the equitable ownership of the fund's assets . </P> <P> In the United Kingdom, the term "investment trust" has a strict meaning under tax law . However, the term is more commonly used within the UK to include any closed - ended investment company, including venture capital trusts (VCTs). The Association of Investment Companies is the trade association representing investment trusts and VCTs . </P> <P> Investors' money is pooled together from the sale of a fixed number of shares which a trust issues when it launches . The board will typically delegate responsibility to a professional fund manager to invest in the stocks and shares of a wide range of companies (more than most people could practically invest in themselves). The investment trust often has no employees, only a board of directors comprising only non-executive directors . </P>

Investment trust in uk are also known as
find me the text answering this question