Investment trusts are the original long-term investment vehicle. This year marks 155 years since the launch of the first investment company, F&C Investment Trust (FCIT), and there are now 25 that are over 100 years old.
Nowadays, there are hundreds of investment companies to choose from and industry assets currently stand at over £260bn. But deciding which is right for you is easier said than done. The answer will depend on your circumstances and appetite for risk, as well as factors such as whether you are looking for income or growth, or a combination of the two.
Performance is one factor to consider. When looking at performance data, it makes sense to look at a variety of time periods and performance for individual years to give a clearer picture of how a company has performed in different market conditions. Past performance is no guide to future returns, but it’s an important consideration.
The AIC provides a wealth of information to help investors navigate the range of different investment companies now available to invest in. Its website, www.theaic.co.uk, offers performance data as well as information on gearing, discounts and premiums, dividends, charges, environmental, social, and governance disclosures, and portfolio and management information. You can also download the latest factsheets and annual reports of investment companies from the website.