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Investment trusts for small cap growth on the cheap

Widening discounts for small company trusts could be an opportunity.
Investment trusts for small cap growth on the cheap
  • Top-performing, growth-focussed, smaller-companies trusts are a stand-out theme of the report this month.
  • The strategy has produced a better-than 10-fold return since mid-2004.

It’s been a choppy few months in the market. Nervousness has crept in about the waning effectiveness of the first wave of Covid vaccines and also about rising inflation. The discounts on many trusts that are vulnerable to these threats have widened, especially growth-focused, smaller-companies investment trusts. This could be an opportunity.

This month’s central theme is a focus on growth-orientated, small cap trusts, and especially those with a focus on the UK.  More broadly, though, it looks like there are two key factors at play this month which have helped shape the choice of ten trusts.

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