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Other pros and cons of investment trusts
The tendency of investment trusts to outperform both open-ended funds and the benchmarks – a performance assisted by cheaper fees – is a powerful reason for investors to favour them. The opportunity presented by fluctuations in the discount is another, although the risks need to be understood. But there are other pros and cons that you also need to understand.
Investment trusts are better understood
Despite investment trusts being the earliest form of mutual fund, loved by a small circle of investors both professional and private, they are neither well known nor widely recommended by independent financial advisers (IFAs).
Historically, IFAs and some investors have viewed investment trusts with suspicion, ...
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