Investment trusts are usually companies, whose activities largely comprise buying and holding securities as principal for the purposes of deriving income and/or capital growth, but who can also be involved in other investments, particularly property.
Unit trusts are investment arrangements established under a deed of trust. As such, they are not legal entities or persons separate from the trustees. The functions and activities of a unit trust are, however, essentially the same as for investment trusts, but with the day-to-day administration of the trust, being the responsibility of third-party managers.
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