Funds vs. Investment Trusts

Investors should consider all the tools at their disposal when building up a diversified tax-efficient portfolio. We compare closed and open-end funds

Emma Wall 10 March, 2014 | 10:30AM

 

Investing in a composite fund can offer investors exposure to foreign markets and niche sectors that they wouldn’t be able to access on their own.

Stock picking can be rewarding – but it is also time consuming and risky. Asset managers’ size mean they can negotiate better deals, influence companies and meet with executives – all on behalf of the private investor. There are more than 5,000 composite funds available to British investors which invest in stocks and bonds listed globally. Buying just one fund can mean you are invested in an average of 50 assets, offering you instant diversity and reducing volatility.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Emma Wall  is former Senior International Editor for Morningstar

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