SimplyFinance - Investment Trusts

What is an Investment Trust?

2007-08-05T23:00:00Z

An investment trust is a company which invests in the shares of other companies. When you invest in an investment trust you are putting your "trust" in that company to wisely invest your money in other companies. These are actively managed funds, meaning that there is a management team that is constantly evaluating and monitoring the funds' performance and they're changing the investment strategy in hopes of maximizing the return on investment. This differers from "passive funds" where investments are made mostly automatically to try and track or trend against an index fund.

When evaluating investment trusts it is important to examine the following:

How has the investment trust done historically? How has their growth compared to other funds that you are considering?
What is the investment trust's strategy? What types of companies are they investing in and does their strategy meet you goals, objectives and investment philosophies?
Who is the management team? What are their credentials and do they inspire confidence? Do you believe that they will wisely invest you money?

You are giving your money over to a company and trusting them to wisely invest your money so it is important to do your research, and make sure you find the firm that is right for you. Ultimately you want to find the team that you believe will do a better job investing your money than you could do yourself (either because of greater expertise or more available time to focus on the trust).

If you'd like to discuss the possibility of investing in an investment trust, fill out our short form, and one of the specialists here at SimplyFinance will put you in touch with an investment advisor who will be able to answer all your questions about investment trusts. If you decide that an investment trust is right for you, the same investment advisor will search the market for the investment trust that best suits your financial goals and circumstances.

CLICK HERE TO APPLY FOR A INVESTMENT TRUST TODAY

The Pros and Cons of Investment Trusts

2007-08-05T23:00:00Z

There are many different types of investments, each with their own inherent advantages and disadvantages. It is important that investors understand the risks that they're taking on when putting their money into different types of investments.

There are several advantages to investing through an Investment Trust as opposed to investing directly into individual companies. Some of the main advantages are:

You are leveraging the expertise of professional investors that have specific knowledge in the companies, markets and sectors considered for investment.
You can invest a small or large amount of money in the one investment (the investment trust itself), and you'll immediately get a diversified portfolio since the trust will put your money into a variety of companies.
It makes it easy for you to build a monthly savings plan, since you can set aside a regular amount of money on a monthly basis and make payments into your Investment Trust.
Investment trusts are closed end funds, meaning that there are a fixed number of shares in circulation. The benefit of this is that the underlying price of these shares is driven by supply and demand and it is not uncommon for Investment Trusts to trade at a discount to their Net Asset value.
Investors that do not have the time to actively manage their investments can get the benefits of a management team to do this work for them.

The disadvantage of investment trusts is that since a management team is employed to actively manage the fund there will be a fee associated with the fund. Ideally, the additional money you earn due to the efforts of the management team will more than cover any additional fees.

It is important to carefully evaluate any Investment Trust. Contact experienced Investment Trusts, ask the right questions and be confident that you are investing your money through expert investors.

CLICK HERE TO APPLY FOR AN INVESTMENT TRUST

The Advantages of Investment Trusts

2007-08-04T23:00:00Z

With all the investment opportunities available in the market, it is important to know what you're getting into. Each type of investment has a number of risks and advantages.

There are several advantages to investing through an Investment Trust as opposed to investing directly into individual companies. Some of the main advantages are:

You are leveraging the expertise of professional investors that have specific knowledge in the companies, markets and sectors considered for investment
You can invest a small or large amount of money in the one investment (the investment trust itself), and you'll immediately get a diversified portfolio since the trust will put your money into a variety of companies
It makes it easy for you to build a monthly savings plan, since you can set aside a regular amount of money on a monthly basis for making payments into your Investment Trust.
Investment Trusts are closed end funds, meaning that there are a fixed number of shares in circulation. The benefit of this is that the underlying price of these shares is driven by supply and demand, and it is not uncommon for Investment Trusts to trade at a discount to their net asset value.
Investors that do not have the time to actively manage their investments can get the benefits of a management team to do this work for them.
It is important to carefully evaluate any Investment Trust. Contact experienced Investment Trusts, ask the right questions and be confident that you are investing your money through expert investors.

If you would like to get started with an investment trust as soon as possible, provide SimplyFinance with a bit of information, and our specialists will put you in touch with investment advisors that will be able to answer all the questions you may have about investing in an investment trust. When you're ready to do the investing, this same advisor will sort through the many investment trusts to find the right investing opportunity for you and your specific needs and circumstances.

CLICK HERE TO CONNECT WITH AN INVESTMENT TRUST ADVISOR TODAY!