A significant stock market sell-off in October hit many investment funds and trusts hard. Over recent years we have become accustomed to seeing double-digit returns from many of our investment picks, but this year finds much of the cohort in the red. In times such as these, it is those holdings which can provide much-needed downside protection and beat their benchmark that shine.
With the end of the tax year drawing near here are some last-minute investment trust ideas.
Investors with substantial Sipp or Isa portfolios – worth, say, £250,000 or more – should have little difficulty generating a decent and sustainable income from their pots, but the situation may be quite different for those with smaller portfolios.
On one hand, they are under pressure to take greater risks in order to boost their income; on the other, they are potentially more vulnerable to market corrections that could seriously erode their capital.