Fund of the week: A low-key trust to beat inflation

This low-key fund has been operating for 130 years. Its longevity, low cost, consistent performance and steady income has won it plenty of fans.

Merchants Investment Trust (LSE: MRCH) has been operating for 130 years, having been set up in the 1880s. Over that time it has rarely hit the headlines. Nonetheless, its low-key longevity has won it plenty of fans.

For the past four years the fund has been managed by Simon Gergel, a Cambridge graduate with 23 years' experience. He keeps costs low by trading selectively he tends to hold stocks for four years and is only drawn to trade when he feels a stock is undervalued. One example is BAE Systems, which has "been sold too much on the back of fears of drastic government spending cuts", Gergel tells The Mail on Sunday.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Swipe to scroll horizontally
Royal Dutch Shell B8.1
GlaxoSmithKline7.7
Vodafone Group6.6
HSBC Holdings6.6
BP5.1
AstraZeneca4.1
Scottish & Southern Energy3.9
British American Tobacco3.7
BAE Systems3.5
National Grid3.2
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.