Don’t ignore investment trust bargains

When stock markets fall, it is often a good time to buy shares - and a good way to do this is via an investment trust. Tim Bennett explains how to find the best investment trusts, and tips one trust to buy now.

When markets are plunging, as we saw earlier this month, it's an unnerving experience. But it can also be exciting, because when markets fall it can represent a good time to buy. So if you felt like nibbling at a stockmarket you've had on your watch list for a while, what's the best way to do it? One option we like is to use investment trusts.

Investment trusts are stockmarket listed companies that buy shares in other companies. As such they compete with other funds, such as unit trusts, to take your money and invest it for you. At first glance, many of the claimed benefits are the same you get instant diversification, the (sometimes illusory) expertise of the fund manager, and a simple structure whereby a single investment gets you access to entire markets or sectors.

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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.