Investment trusts which one and why!!

GB12

There's a lot of investment trusts out there. Can't always keep up with the different sectors never mind all the ITs in them.
At the moment I am skint, very skint in fact. I am not a fan of trading but I will be removing a fair amount of money out of my sipp to put into my isa as I won't need to pay tax. So this year and next is the time to take it out (state pension 2023)
My plans are only investment trusts...probably.!
I will add a small amount to my UK Smaller Companies portfolio after that ..... I haven't yet decided. 

dunstonh

If you are going to use single sector funds then you need around 8-15 to give you coverage across the sectors assuming 1 per major sector and whether you are going with a core and satellite approach or other.   I assume core and satellite strategy as you have chosen UK smaller companies for one fund which is an obvious satellite selection rather than a core selection.

If you cannot keep up with the research and reviewing then have you considered going multi-asset or global tracker?

GeoffTF

Why bother with ITs. You have to pay stamp duty when you buy them, costs are high, and they may also under-perform. Tracker funds are much cheaper.

ColdIron

Judging by your previous posts your strategy is unclear at best. If you cannot do the research then a single multi asset fund would probably be your best bet

GB12

GeoffTF said:

Why bother with ITs. You have to pay stamp duty when you buy them, costs are high, and they may also under-perform. Tracker funds are much cheaper.

Agreed but my picks todate are doing far better (on average) than a tracker. Mind adding one might be a good idea....which!!

GB12

ColdIron said:

Judging by your previous posts your strategy is unclear at best. If you cannot do the research then a single multi asset fund would probably be your best bet

I haven't said I can't do the research. I am trying to get a thread going on different investment trusts. 

My strategy is to take into account that I MAY decide to move to a more expensive area (housing).
But also as this may not  happen. If it does I would think around 5 years time.
As an aside I took out a small equity release in December 2020.
£30,000 at 2.36% (+ £395 brokers fee and £650 plus vat solicitors)
I have paid to date the £770 interest out of £1300 dividends.  If I do move I can take it with me but would consider increasing it substantially.  Interest rates could be a lot higher then but with the dividends I have from the income equity shares they would have to be lot higher for me not to be able to pay the interest and still have lots of beer money left over.
Lots.

GeoffTF

GB12 said:

GeoffTF said:

Why bother with ITs. You have to pay stamp duty when you buy them, costs are high, and they may also under-perform. Tracker funds are much cheaper.

Agreed but my picks todate are doing far better (on average) than a tracker. Mind adding one might be a good idea....which!!

It is not the cheapest global tracker, but this one is probably the most popular:

https://www.vanguardinvestor.co.uk/investments/vanguard-ftse-all-world-ucits-etf-usd-distributing/overview

You can save money converting dividends from dollars to pounds by using the accumulation version VWRP. If you have done better, for the same level of risk, you have been lucky.

bostonerimus

GB12 said:

There's a lot of investment trusts out there. Can't always keep up with the different sectors never mind all the ITs in them.
At the moment I am skint, very skint in fact. I am not a fan of trading but I will be removing a fair amount of money out of my sipp to put into my isa as I won't need to pay tax. So this year and next is the time to take it out (state pension 2023)
My plans are only investment trusts...probably.!
I will add a small amount to my UK Smaller Companies portfolio after that ..... I haven't yet decided. 

So are you using your 25% tax free allowance to fund this ISA?

wmb194

GeoffTF said:

Why bother with ITs. You have to pay stamp duty when you buy them, costs are high, and they may also under-perform. Tracker funds are much cheaper.

You don't have to pay stamp duty when buying the ones domiciled in Jersey and Guernsey.

GB12

bostonerimus said:

GB12 said:

There's a lot of investment trusts out there. Can't always keep up with the different sectors never mind all the ITs in them.
At the moment I am skint, very skint in fact. I am not a fan of trading but I will be removing a fair amount of money out of my sipp to put into my isa as I won't need to pay tax. So this year and next is the time to take it out (state pension 2023)
My plans are only investment trusts...probably.!
I will add a small amount to my UK Smaller Companies portfolio after that ..... I haven't yet decided. 

So are you using your 25% tax free allowance to fund this ISA?

Yes the only taxable income I have is £3000 worth of dividends.  And as you know only £1,000 is taxable.  I get state pension next year so cant take full amount next year. 

GB12

wmb194 said:

GeoffTF said:

Why bother with ITs. You have to pay stamp duty when you buy them, costs are high, and they may also under-perform. Tracker funds are much cheaper.

You don't have to pay stamp duty when buying the ones domiciled in Jersey and Guernsey.

Are you sure?
I haven't noticed. I think both of my Vietnam ones are domicilled outside the UK. 
Nice get a few extra shares.