Difference between a unit trust and investment trust?

Does anyone know the difference between them? Which is better and less risky?

Unit Trusts are Open-Ended investment vehicles - If you want to buy them, you can, and the fund size gets bigger overall as new units are made. The only things that affect Unit Trusts are the value of them (e.g: if you're following an index say, FTSE All-Share, the price of your units will reflect the gain/loss in the FTSE All-Share index, minus tracking error.)

Investment Trusts are Closed-Ended Investment vehicles - Unlike a unit trust, new units are not made (i.e: a finite number of shares) so if you want to buy then, you have to wait till you get a seller. So the things that affect the value of Investment Trusts are supply and demand aswell as the price of the investment itself.

I'd suggest Unit Trusts, I personally have a FTSE-All Share Tracker Unit Trust. They're more easier to understand than Investment Trusts.

What Investments are you thinking to get?

I am still not very clear. Is there a simpler way of explaining it? Can investment trusts be sold in the normal way like shares?

I am thinking of buying Woodford patient capital investment trust. Any advice on that?

Correct, IT's can be traded as shares

I'm a crap explain-er so take a look at this

http://www.morningstar.co.uk/uk/news/105931/funds-vs-investment-trusts.aspx

I personally ain't a fan of Woodford's fund or active fund management for that matter because fees are a bit expensive.

Be sure to research/speak to a financial advisor as this is my opinion, I believe his funds are good as a starting point.

How much are you willing to invest in that fund?

I will look at the link when I am more awake and alert as it is too heavy at this time of night. I do appreciate you helping me to understand, I just think you have more financial experience. It is an IPO and the minimum is one thousand pounds so still not made a final decision. I don't have a financial advisor, but have heard that he is very good at what he does, so worth a punt.

I forgot to mention that his Patient Capital fund invests in early stage businesses - So keep a note that for optimum returns on your money, you should keep it within that fund for about 5-10 years (hence the word patient lol!).

The Risk to Reward ratio in that type of fund is quite high, I only suggest investing in that if you can ride the volatility.

If that's not the case, I'd seriously consider investing in his Equity Income fund (preferably accumulation unis as you want your dividends to be reinvested so more money at the end of the day).

That fund is doing very well since it opened last year.

He is a talented manager, I can tell you that

Great sense of humour. So do you think it is better to invest in the equity income fund ? How long will I have to look at investing that for? Feeling confused now as to which one to go for

What's your risk profile like?

Long term? - Invest in patient capital

Short term? - Don't invest in patient capital (keep it in the highest interest bank account you can find)

Medium term? - Invest in Equity Income

Okay that is good advice. I will sleep on it and make a final decision.

Thanks