Investment Trusts or Unit Trusts

bigfreddiel

JamesU wrote: »

Certainly worth researching ITs individually on Investor Chronicle, lots of useful info there on ITs all the time. For example CTY IT considered one of the "magnificent seven" ITs as in link below. Take care with the date of articles and their current relevance though.

http://www.investorschronicle.co.uk/InvestmentGuides/Funds/article/20110405/6161b2f6-5f70-11e0-a1e9-00144f2af8e8/Investment-trusts-the-Magnificent-Seven.jsp

JamesU

Cheers james - interesting list

fj

JamesU

bigfreddiel wrote: »

Cheers james - interesting list

Based on previous thread discussion regarding costs and relative performance between UTs and IT equivalents, link below comparing 22 of them, which is also quite interesting. As previously, worth noting the considerations on dealing costs, performance fees and moving discounts that are mentioned.

http://www.investorschronicle.co.uk/InvestmentGuides/Funds/article/20110328/155db7ac-56d2-11e0-8a02-00144f2af8e8/Trusts-that-beat-their-mirror-funds.jsp

JamesU

jimjames

Alliance trust are doing a deal until 15 June (so get your skates on!) where a range of investment trusts are available for no dealing charge. You still pay stamp duty but it could save you a few quid if you need to top up your ISA.

moneylover

can you post a link? I don't really know anything about Alliance Trust although I do know that I may buy some ITs rather than UTs
Can you only put the trusts in an ISA? And then you pay to maintain the ISA?
I dont particularly need to put my shares in an ISA as I dont pay tax at a higher rate. I do know there can still be some advantages in using an ISA)
Many thanks

cheerfulcat

Link to the offer here. Doesn't need to be in an ISA.

bigfreddiel

moneylover wrote: »

can you post a link? I don't really know anything about Alliance Trust although I do know that I may buy some ITs rather than UTs
Can you only put the trusts in an ISA? And then you pay to maintain the ISA?
I dont particularly need to put my shares in an ISA as I dont pay tax at a higher rate. I do know there can still be some advantages in using an ISA)
Many thanks

ITs are just shares - buy themlike any other stock on the lse

What happens when you become a higher rate tax payer - and/or your portfolio grows and pushes your income or cgt over the the threshold - you'll be wishing you had an ISA.

Do you really want to keep records of dividends for your tax return - well if you use an ISA you have no need to do so.

An ISA has annual fees - well actually they don't.

You don't do an annual tax return - well one day you may need to - get in shape now

speaking for myself i'm a basic rate tax payer, my wife is retired,we both do a tax return,last year my wife received £500 rebate.

Our ISA investments has saved us thousands in tax each year not to mention reord keeping and doing our returns - takes literay minutes now.

hope thats interesting for you

fj

gadgetmind

moneylover wrote: »

I dont particularly need to put my shares in an ISA as I dont pay tax at a higher rate. I do know there can still be some advantages in using an ISA)

My wife holds a fair few shares and ITs outside of ISAs, and life would be much easier if they were in one, but you're very limited regards what you can do per annum in an ISA.

Outside of an ISA, you need to keep a lot of records, constantly worry about CGT and dividends pushing you into higher rate, and it doesn't take many corporate actions to make this a very real risk. ITs do remove some of the work, and provide a more stable dividend stream, which is nice.

Totton

For anyone interested in Investment Trusts I would recommend a read of the forum over at Motley Fool, in particular seek out the posts of Luniversal, lootman and a few others whom you will see in threads featuring these two who often have slightly differing views. http://boards.fool.co.uk/investment-trusts-unit-trusts-50097.aspx?mid=12281931

JamesU

Recent article below on some investment trusts used in growth and income IT portfolios. Outlines some typical ITs that are used as building blocks, and their % allocations in the portfolios. Not recommendations of course, but may be a useful article for those interested. Also available in this week's IC magazine.

http://www.investorschronicle.co.uk/Columnists/GuestColumnists/article/20110704/01d2f1de-a623-11e0-bff1-00144f2af8e8/Go-high-and-go-deep.jsp

JamesU

Reaper

There is a recent article in the FT called "Impact of fund fees revealed" which quotes a study that compared funds that offer an OEIC and IT option. In 70% of cases the IT wins over 3 years, 5 years and 10 years because of the lower charges.
http://www.ft.com/cms/s/2/5968b962-a95a-11e0-bcc2-00144feabdc0.html#axzz1RnD2Dcoy