- If investors can look past its recent travails, Scottish Mortgage is cheap
- JP Morgan Indian has underwhelmed but now offers a very low entry point.
This month’s Alpha investment trust report highlighted some discounted growth plays of very different ilks. Long a name to dodge a discount, Scottish Mortgage (SMT) is available to buy on the cheap if investors can look past its recent challenges. Elsewhere, an India trust dogged by relative performance issues nevertheless looks compelling.
Technology stocks have undoubtedly had a tough time as their valuations adjust to a higher interest rate world but for investors with a long time horizon, further volatility may be something they can stomach for the long-term growth potential on offer. In the short term, of course, there is plenty of uncertainty that could cause stocks to fall and investment trust discounts to widen further. Investors may well be wise to wait for the next lurch downwards in equity markets, but they should certainly be pondering opportunities.
Bargain Baillie Gifford, and a discounted India play
Few investment firms have exemplified the painful turn away from growth investments like Baillie Gifford, and few of its funds capture that moment quite as well as its flagship investment trust. Scottish Mortgage has had an extremely rocky year, but shares do now look cheap for the adventurous investor. Another name making it into this month’s report - JP Morgan Indian (JII) - serves as a play on one of the most popular emerging markets - with the caveat that its “cheap” price tag may relate to some underwhelming returns versus its benchmark.
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