Why Investment Trusts?

1.2 What are the benefits of investment trusts?

Investment trusts are often known as the City’s best-kept secret. When investors discover them, they often say they wish they’d known about them before...

Investment trusts offer many benefits for savvy first-time and experienced investors, especially in the long term.

They are easy to buy and sell, and cover every major market – whether you favour a cautious or more adventurous approach to investing.

Here’s why they have such wide appeal.



Our trusts allow you to choose the markets you invest in.

You may wish to build a global portfolio with stakes in the world’s biggest economies. Or you may want to focus on the UK stock market, the US, Far East or Europe.

There’s also the chance to make the most of our strength and experience in China and Russia.


Investment trusts can have a wide remit or specialise in countries or sectors. You can focus on growth, income or a mixture.


If you’re just starting to invest, you could consider a general trust with a good spread.

If you’ve already begun, investment trusts are a useful way into specialist markets or industries.

Whatever your experience, you can benefit from the research and knowledge of J.P. Morgan Asset Management specialists.


Investment trusts are simple to buy and sell. They are traded on the stock market like shares. When a trust wants to expand, it issues shares to raise money from shareholders and invests the funds.


Trusts tend to be cheaper than other pooled investments such as OEICs and unit trusts. This is because they are traded like shares.


A single company’s fortunes ebb and flow with market conditions. A diversified trust aims to avoid any sudden economic shocks.

Long term

The value of investment trusts can rise and fall, and you might not get back the money you put in. But they’re spread across a range of companies. If one company isn’t doing well, it is only a small part of the portfolio and therefore may have a lesser effect on overall performance.


An individual investor would find it hard to build a portfolio of upwards of 20 companies unless they had a large sum to invest.

Shareholders in investment trusts get all the spread of different companies with minimum overheads and time. 

Diversification does not guarantee investment returns and does not eliminate the risk of loss, however it does help reduce the overall risk of the portfolio.

What is an investment trust and how does it work? Previous Chapter 1.1 1.1
What is the difference between an investment trust and a fund? Next Chapter 1.3 1.3

Please read this important information

This is a marketing communication and as such the views contained herein are not to be taken as an advice or recommendation to buy or sell any investment or interest thereto. Reliance upon information in this material is at the sole discretion of the reader. Any research in this document has been obtained and may have been acted upon by J.P. Morgan Asset Management for its own purpose. The results of such research are being made available as additional information and do not necessarily reflect the views of J.P. Morgan Asset Management. Any forecasts, figures, opinions, statements of financial market trends or investment techniques and strategies expressed are unless otherwise stated, J.P. Morgan Asset Management’s own at the date of this document. They are considered to be reliable at the time of writing, may not necessarily be all inclusive and are not guaranteed as to accuracy. They may be subject to change without reference or notification to you. It should be noted that the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Changes in exchange rates may have an adverse effect on the value, price or income of the products or underlying overseas investments. Past performance and yield are not reliable indicators of current and future results. There is no guarantee that any forecast made will come to pass. Furthermore, whilst it is the intention to achieve the investment objective of the investment products, there can be no assurance that those objectives will be met. J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. To the extent permitted by applicable law, we may record telephone calls and monitor electronic communications to comply with our legal and regulatory obligations and internal policies. Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our EMEA Privacy Policy www.jpmorgan.com/emea-privacy-policy.

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