Costs are one of the few things we can control as investors. They have a massive impact on your long-term returns, too. While you could say performance is ultimately all that matters, I’d still say costs should be a key factor when choosing where to invest.
Since I started to invest, fund charges have generally headed in a southerly direction. Thanks to the popularity of index funds, Vanguard and the late, great John Bogle, more of my returns are finding their way into my pocket rather than someone else’s.
Falling markets can be useful in many ways. They can provide attractive entry prices for long-term investors. And they can reveal who has been swimming naked.
Venture capital trusts (VCTs) were created in the mid-1990s to provide much-needed capital for small, fast-growing companies. A pretty dazzling array of tax reliefs are offered to lure investors into this high-risk area. But the rules are shifting and the VCT landscape is changing.
Although investment trusts have seen a big leap in popularity over the last decade, they still seem to be a niche endeavour. Books about investment trusts tend to be very rare, so I was keen to read The Investment Trust Handbook. It didn’t disappoint.
We’re currently in ‘correction’ territory with the UK market down 10% from its most recent peak in May 2018. Stock market falls like this can hit investment trusts harder than most, as a lot of funds have some level of gearing and discounts to asset values tend to widen.
In the never-ending search for income, many people are drawn to investment trust dividends. They come in all shapes and sizes, though, and there are a few nooks and crannies dividend seekers should be aware of.
There has been no shortage of articles marking the 10th anniversary of the financial crash in recent weeks. This isn’t another one you’ll be pleased to hear. Well, perhaps just tangentially.
Read a little about investment funds and you’ll soon come across someone saying “investment trusts outperform other types of fund”. There are good reasons to believe that they may do, but it’s a very difficult thing to prove.
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