1.2 What are the benefits of investment trusts?
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.
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.
Please read this important information
Investment is subject to documentation. The Investor Disclosure Document, and Key Features / Terms & Conditions can be obtained free of charge from JPMorgan Asset Management (UK) Limited, and the Key Information Document can be obtained from JPMorgan Funds Limited or www.jpmam.co.uk/investmenttrust. This communication is issued by JPMorgan Asset Management (UK) Limited, which is authorised and regulated in the UK by the Financial Conduct Authority. Registered in England No: 01161446. Registered address: 25 Bank Street, Canary Wharf, London E14 5JP.