A few years ago, split capital investment trusts were mired in scandal as some investors lost lots of money in risky funds. However, for those looking for higher rates of income and prepared to take on higher risks, they can play a useful role in a portfolio.
What are they?
Split capital trusts are investment trusts that issue more than one class of share. This means an investor can decide whether they’d rather have a high rate of income, or a focus on capital growth from the same trust.
The trusts tend to have a fixed term (usually five [...]
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