For many investors, investment trusts’ main attraction – and the main difference between them and open-ended investment companies (Oeics) – is income. But there are also reasons to look to this sector for growth and/or value.
It is typically more difficult to see attractions (versus Oeics) when looking for growth, especially with more mainstream equity-focused funds. That said, there are always the advantages of typically lower costs, the ability to gear the portfolio and the chance to invest in something that is otherwise unattainable, offering more risk but potentially higher returns. The best options for growth in the trust arena right now may be in the real estate investment trust (Reit) sector, which we covered in our last article.