Helen Pridham

Avoid the pitfalls of buying an investment trust on a premium

When you buy an investment trust, your main hope is that its share price will be higher by the time you want to sell. Whether this happens and by how much will largely depend on the skills of the investment manager in growing the portfolio, and the direction of the stock market or other asset classes in which it invests.

These two portfolios should give investors a £10,000 annual income

Inflation, standing at 2.5 per cent for March, may be on the wane after peaking in November at 3.1 per cent – but it has not gone away, and it is potentially very damaging for investors. It will gradually erode the value of your capital and income, so anyone investing for the long term who needs a regular income really needs to look for investments with the potential to maintain the value of their capital and preferably grow their income payments as well. This is where some of the Money Observer Rated Funds can help.