DIY investors embrace investment trusts
Three leading investment trust houses yesterday commented on the increasing amount of their trusts held by DIY investors.
Appetite for investment trusts has certainly risen amongst our clients. The proportion of clients holding investment trusts in their Vantage account has doubled in the last five years, and now stands at 11%.
We now also offer a regular saving scheme into eligible FTSE 350 investment trusts, which lets investors save monthly from as little as £50 per trust a month.
Lath Khalaf, senior analyst, Hargreaves Lansdown: “DIY investors have always held investment trusts on the Vantage platform, but we believe much of the recent upswing in popularity is down to the online investment trust centre we launched earlier this year. This online tool provides all the nitty gritty investors need to carry out their investment trust research thoroughly.
Investment trusts have also stepped further into the public eye in recent years, with high profile managers like Neil Woodford, Richard Buxton, and Nick Train attracting attention.
Investors do need to do their homework properly on investment trusts because they are more complicated than unit trusts, in particular because of their pricing and their use of gearing. However the increasing popularity of this sector shows that DIY investors are using all the tools at their disposal to manage their savings.”
