Put your faith in investment trusts

Investment trusts are a much better place to put your cash than unit trusts, says Tim Bennett. Here's why.

If you had asked a financial adviser to recommend a fund for you over the last decade, the chances are they'd have sold you a unit trust. Why? Because they'd have been paid a generous commission to do so. That's one reason why funds under management within unit trusts have soared by around 120% in the last ten years. But we prefer their less popular rivals, investment trusts, where funds under management are up just 18% over the same period. Here's why.

Investment trusts perform better

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Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.