Investment trusts are companies that exist to invest in a range of assets, primarily publicly traded stocks and bonds. They operate by issuing shares to investors on a stock exchange, providing investors an opportunity to gain exposure to various investment strategies and portfolios. These trusts are managed by professional fund managers, who make decisions on behalf of the shareholders. Investment trusts can trade at a premium or discount to their net asset value (NAV), which is calculated based on the underlying assets held by the trust. This structure allows for liquidity in the investment, as shares can be bought and sold on the stock market, unlike mutual funds which are traded only at the end of the trading day. Investment trusts can be particularly appealing to investors looking for income generation through dividends and portfolio diversification.