Should investors buy an investment trust or a fund? – James Carthew of QuotedData talks to Jen Hill of Money Observer
A recent comparison of open-ended funds versus closed-ended investment companies suggests the latter are losing their edge on charges, but compelling reasons remain to opt for investment trusts, writes Jennifer Hill
Investment trusts have long been seen to offer superior performance to funds thanks to their ability to ‘gear’ investments, hold a fixed pool of assets to smooth returns and charge historically lower costs.
Over the longer term, this still holds true: investment trusts, which are closed-ended in nature, outperformed open-ended funds in 13 out of 16 comparable sectors over five years, and 11 out of 16 over 10 years,… read more here