Lindsell Train

ArchBair

bowlhead99 wrote: »

.So in summary I agree with Bostonerimus and many IFAs in concluding that ITs can be less suitable than open ended funds for a 'typical' retail investor. The 'typical' investor comes from a position of low knowledge and does not necessarily have much experience in the world of investment management, nor hang out in investment forums such as this. Personally I find ITs quite simple to understand but I have 20+ years of finance experience and read lots of company and transaction structuring documentation through the course of my career. If you are just going to buy and hold indefinitely, one vehicle is not necessarily better than the other; the suitability of a closed-ended or open-ended structure (and the ultimate performance) depends on what they actually do.

As I mentioned in my previous post, I tend to agree with dividendhero. As long as you invest in well established IT's with good long term active management then there is nothing to fear from investing in IT's. However, I do agree that typical novice investors should generally stick with OEIC's.

bowlhead99

ArchBair wrote: »

As I mentioned in my previous post, I tend to agree with dividendhero. As long as you invest in well established IT's with good long term active management then there is nothing to fear from investing in IT's. However, I do agree that typical novice investors should generally stick with OEIC's.

I think that's fair comment and as I said in the conclusion, both methods can be suitable if you know what you doing, and whether the outcome is good or not will depend to a large extent on what the investment vehicle actually holds.

I was only motivated to post a response to dividendhero's post because his/her three points did not seem to go any way to refuting bostonerimus's contention despite purporting to do so