Fund vs Trust

Glen_Clark

EdGasket wrote: »

Try ETF's (exchange traded funds). You can buy and sell in real time and the fund charges are much much lower than investment trusts. Annual fee, zero (at least with x-o, AJ Bell Youinvest, and TD Direct)

I hold both, and don't understand why people are paying £45 pa to hold ITs on HL when they are free to hold on x-o ?
Yes the fees are higher on ITs, but balanced against that where you can buy ITs on a discount the fund managers may be a liability that is already priced into the shares.
You also have to bear in mind that careful investing in such things as Private Equity - directly investing in small companies, costs a lot more than simply buying shares in large companies like ETFs do.

Radiantsoul

Glen_Clark wrote: »

I hold both, and don't understand why people are paying £45 pa to hold ITs on HL when they are free to hold on x-o ?

People love HL customer service. Quite a price to pay for it I suppose, but some of the other discount brokers are pretty terrible on that front.

Glen_Clark

Radiantsoul wrote: »

People love HL customer service. Quite a price to pay for it I suppose, but some of the other discount brokers are pretty terrible on that front.

I have always found x-o customer service very good but hope I am not tempting fate by saying it

IronWolf

Investment trusts hold the advantage that they are closed ended, and so dont have to worry about investor withdrawals and short term performance.

You can also sometimes buy them at a discount, which is what I like.