ETFs and investment trusts are each vehicles that offer investors the ability to diversify their portfolio and potentially earn a good return on their investment. On the other hand, mutual funds narrowly maintained their lead over collective investment trusts, but CITs are growing faster, suggesting a potential shift in the investment landscape.
When interest rates rise, investors run for cover towards any good asset that they can find. Alternative investments, like real estate, become more attractive as traditional investments may see a decline in returns. Top investment funds ranked include Vanguard LifeStrategy 80% Equity, Royal London Short Term Money Market, L&G Global Technology Index, and Jupiter.
Recent data from the wealth management sector shows that investment trusts can outperform open-ended funds, but how? This has sparked a debate between investors on the pros and cons of each investment vehicle. Investment trusts versus funds. A debate as old as time, or at least since 1931 when M&G launched the first unit trust.