Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to johnstevens77,Bhoddhisatva,scotia,Anonymous,Cornytiv34, for Donating to support the site

Young investors opt for investment trusts.

General discussions about equity high-yield income strategies
moorfield
Lemon Quarter
Posts: 3523
Joined: November 7th, 2016, 1:56 pm
Has thanked: 1546 times
Been thanked: 1402 times

Young investors opt for investment trusts.

#427468

Postby moorfield » July 13th, 2021, 6:59 pm

Young investors are more inclined to opt for investment trusts over individual stocks.

https://www.dailymail.co.uk/money/inves ... demic.html


Jolly sensible. No HYP nonsense for them. :twisted:

Discuss.

AleisterCrowley
Lemon Half
Posts: 6381
Joined: November 4th, 2016, 11:35 am
Has thanked: 1880 times
Been thanked: 2026 times

Re: Young investors opt for investment trusts.

#427472

Postby AleisterCrowley » July 13th, 2021, 7:10 pm

better off with cheap index trackers
Pah! Harrumph!

XFool
The full Lemon
Posts: 12636
Joined: November 8th, 2016, 7:21 pm
Been thanked: 2608 times

Re: Young investors opt for investment trusts.

#427474

Postby XFool » July 13th, 2021, 7:11 pm

I saw that too. As usual, it raised more questions than answers:

Were the "returns" total returns or capital returns? (Were the older investors taking an income?)

If the younger investors were investing more in "growth" shares (makes sense) and the older investors more in "income" shares, what is the significance of the result?

moorfield
Lemon Quarter
Posts: 3523
Joined: November 7th, 2016, 1:56 pm
Has thanked: 1546 times
Been thanked: 1402 times

Re: Young investors opt for investment trusts.

#427481

Postby moorfield » July 13th, 2021, 7:42 pm

XFool wrote:I saw that too. As usual, it raised more questions than answers:

Were the "returns" total returns or capital returns? (Were the older investors taking an income?)

If the younger investors were investing more in "growth" shares (makes sense) and the older investors more in "income" shares, what is the significance of the result?


I read it as Total Return. What is interesting I thought mentioned is the age demographic of individual stock pickers, which I hazard is by and large similar to that of LF posters and chimes with one of my own suspicions: HYP is an old man's hobby.

kempiejon
Lemon Quarter
Posts: 3488
Joined: November 5th, 2016, 10:30 am
Has thanked: 1 time
Been thanked: 1145 times

Re: Young investors opt for investment trusts.

#427482

Postby kempiejon » July 13th, 2021, 7:45 pm

moorfield wrote:Young investors are more inclined to opt for investment trusts over individual stocks.

https://www.dailymail.co.uk/money/inves ... demic.html


Jolly sensible. No HYP nonsense for them. :twisted:

Discuss.

The DM doesn't get my click were those high yield choices?
AleisterCrowley wrote:better off with cheap index trackersPah! Harrumph!

Love a tracker (I still have mine) especially for a young investors but same question, high yield trackers?

moorfield
Lemon Quarter
Posts: 3523
Joined: November 7th, 2016, 1:56 pm
Has thanked: 1546 times
Been thanked: 1402 times

Re: Young investors opt for investment trusts.

#427483

Postby moorfield » July 13th, 2021, 7:48 pm

kempiejon wrote:The DM doesn't get my click were those high yield choices?


That would be telling. Click. You know you want to...

Padders72
Lemon Slice
Posts: 318
Joined: November 8th, 2016, 7:53 pm
Has thanked: 123 times
Been thanked: 177 times

Re: Young investors opt for investment trusts.

#427484

Postby Padders72 » July 13th, 2021, 7:49 pm

If it hadn't been comprehensively discredited by last year's Covid Crash then perhaps HYP or something like it might still have people seriously considering it, as it is, many are now seeking the stability that ITs offer or at the very least a melded approach. I've always considered Pyadic HYP to be way too over restrictive and thus it proved to be. When the crunch came, putting all your eggs into one single asset class, single market, single index basket proved not the best plan.

Itsallaguess
Lemon Half
Posts: 9129
Joined: November 4th, 2016, 1:16 pm
Has thanked: 4140 times
Been thanked: 10023 times

Re: Young investors opt for investment trusts.

#427485

Postby Itsallaguess » July 13th, 2021, 7:52 pm

moorfield wrote:
What is interesting I thought mentioned is the age demographic of individual stock pickers, which I hazard is by and large similar to that of LF and chimes with one of my own suspicions:

HYP is an old man's hobby.


I'm not quite sure that tells the full story though...

I think it's got more to do with the evolution of investment options since that older generation took an interest, and I remain convinced that many of that older generation might have made different decisions were they to have had some of the alternative options that are available today...

Cheers,

Itsallaguess

moorfield
Lemon Quarter
Posts: 3523
Joined: November 7th, 2016, 1:56 pm
Has thanked: 1546 times
Been thanked: 1402 times

Re: Young investors opt for investment trusts.

#427487

Postby moorfield » July 13th, 2021, 8:00 pm

Itsallaguess wrote:
I think it's got more to do with the evolution of investment options since that older generation took an interest, and I remain convinced that many of that older generation might have made different decisions were they to have had some of the alternative options that are available today...




Plenty of high yield investment trusts were available to buy in November 2000, I think. ;)

Dod101
The full Lemon
Posts: 16629
Joined: October 10th, 2017, 11:33 am
Has thanked: 4343 times
Been thanked: 7534 times

Re: Young investors opt for investment trusts.

#427488

Postby Dod101 » July 13th, 2021, 8:19 pm

moorfield wrote:
: HYP is an old man's hobby.


Not this old man's. I am I suppose primarily an income investor but certainly not HYP. I have never seen it in the tightly bound and regulated Board such as TLF promotes as being in any way sensible. If young people are investing in ITs I am quite surprised because they are not the most dynamic of investments. Maybe like my grandchildren, they have inherited ITs from earlier bare trusts and so have not really 'opted for them' at all.

Dod

moorfield
Lemon Quarter
Posts: 3523
Joined: November 7th, 2016, 1:56 pm
Has thanked: 1546 times
Been thanked: 1402 times

Re: Young investors opt for investment trusts.

#427491

Postby moorfield » July 13th, 2021, 8:30 pm

Padders72 wrote:I've always considered Pyadic HYP to be way too over restrictive and thus it proved to be. When the crunch came, putting all your eggs into one single asset class, single market, single index basket proved not the best plan.


I agree with your first sentence, but not the second. I think investing in UK equities for a retirement income is sound, but not the ideas of "never sell" or "strategic ignorance" . Portfolio adjustment is needed from time to time imo. How and when one does that could probably fill up a forum all of its own ...

moorfield
Lemon Quarter
Posts: 3523
Joined: November 7th, 2016, 1:56 pm
Has thanked: 1546 times
Been thanked: 1402 times

Re: Young investors opt for investment trusts.

#427493

Postby moorfield » July 13th, 2021, 8:33 pm

Dod101 wrote:
Not this old man's. I am I suppose primarily an income investor but certainly not HYP.




I guess you must post on HYP-P then because you are now contemplating taking a HYP approach to investing? :lol:

GrahamPlatt
Lemon Quarter
Posts: 2059
Joined: November 4th, 2016, 9:40 am
Has thanked: 1032 times
Been thanked: 823 times

Re: Young investors opt for investment trusts.

#427494

Postby GrahamPlatt » July 13th, 2021, 8:35 pm

Seems I must be entering my second childhood.

Padders72
Lemon Slice
Posts: 318
Joined: November 8th, 2016, 7:53 pm
Has thanked: 123 times
Been thanked: 177 times

Re: Young investors opt for investment trusts.

#427495

Postby Padders72 » July 13th, 2021, 8:36 pm

moorfield wrote:
Padders72 wrote:I've always considered Pyadic HYP to be way too over restrictive and thus it proved to be. When the crunch came, putting all your eggs into one single asset class, single market, single index basket proved not the best plan.


I agree with your first sentence, but not the second. I think investing in UK equities for a retirement income is sound, but not the ideas of "never sell" or "strategic ignorance" . Portfolio adjustment is needed from time to time imo. How and when one does that could probably fill up a forum all of its own ...


Well just to clarify, I wasn't suggesting that investing in the FTSE 100 single companies was wrong, just that only doing so seemed a bit bloody minded! And yes those other factors you mention always had me scratching my head too. Strategic ignorance just seems like ignorance to me, though I know the acolytes often say the original intention is misinterpreted if viewed that way.

Dod101
The full Lemon
Posts: 16629
Joined: October 10th, 2017, 11:33 am
Has thanked: 4343 times
Been thanked: 7534 times

Re: Young investors opt for investment trusts.

#427498

Postby Dod101 » July 13th, 2021, 9:00 pm

moorfield wrote:
Dod101 wrote:
Not this old man's. I am I suppose primarily an income investor but certainly not HYP.




I guess you must post on HYP-P then because you are now contemplating taking a HYP approach to investing? :lol:



Because I am primarily an income investor, I am likely to have a leaning towards high yield shares but I am certainly not and never have been a pyadic disciple of the HYP. I occasionally post on the HYP Board but usually because I do not check which Board the post that I am interested in is on.

Dod

csearle
Lemon Quarter
Posts: 4764
Joined: November 4th, 2016, 2:24 pm
Has thanked: 4814 times
Been thanked: 2083 times

Re: Young investors opt for investment trusts.

#427499

Postby csearle » July 13th, 2021, 9:03 pm

Maybe I'm missing something here but (admittedly with hindsight) investment trusts can have a particular advantage over individual share holdings during a dividend-cutting pandemic because the trust manager can maintain the dividend, and therefore a semblance of normality, by selling off the underlying assets to keep the investment looking good. So for a finite amount of time they can weather such a storm and appear to be immune.

Whether these young investors saw this in advance and beat their older competitors I do not know.

Chris

csearle
Lemon Quarter
Posts: 4764
Joined: November 4th, 2016, 2:24 pm
Has thanked: 4814 times
Been thanked: 2083 times

Re: Young investors opt for investment trusts.

#427500

Postby csearle » July 13th, 2021, 9:04 pm

Dod101 wrote:I occasionally post on the HYP Board but usually because I do not check which Board the post that I am interested in is on.
Room for improvement. :) C.

richfool
Lemon Quarter
Posts: 3492
Joined: November 19th, 2016, 2:02 pm
Has thanked: 1195 times
Been thanked: 1280 times

Re: Young investors opt for investment trusts.

#427502

Postby richfool » July 13th, 2021, 9:22 pm

csearle wrote:Maybe I'm missing something here but (admittedly with hindsight) investment trusts can have a particular advantage over individual share holdings during a dividend-cutting pandemic because the trust manager can maintain the dividend, and therefore a semblance of normality, by selling off the underlying assets to keep the investment looking good. So for a finite amount of time they can weather such a storm and appear to be immune.

Whether these young investors saw this in advance and beat their older competitors I do not know.

Chris

An IT investor is also acquiring a considerable amount of diversification, within each single IT, as the trust will hold many stocks in many sectors (depending on the mandate of the particular IT) and may often have access to stocks that individual investors may not.

Urbandreamer
Lemon Quarter
Posts: 3121
Joined: December 7th, 2016, 9:09 pm
Has thanked: 347 times
Been thanked: 1025 times

Re: Young investors opt for investment trusts.

#427509

Postby Urbandreamer » July 13th, 2021, 10:16 pm

Dod101 wrote:If young people are investing in ITs I am quite surprised because they are not the most dynamic of investments. Maybe like my grandchildren, they have inherited ITs from earlier bare trusts and so have not really 'opted for them' at all.

Dod


Err, Dod were you aware that a new IT heading for the moon, well at least in to space, is attempting to launch tomorrow?
"Seraphim Space Investment Trust"

I confess that when younger I invested in a investment trust aiming to trade options for profit. It didn't work out well.

However I do question your assumption about IT's. Given that I know you hold SMT, not known for being boring.

Dod101
The full Lemon
Posts: 16629
Joined: October 10th, 2017, 11:33 am
Has thanked: 4343 times
Been thanked: 7534 times

Re: Young investors opt for investment trusts.

#427517

Postby Dod101 » July 13th, 2021, 10:58 pm

Urbandreamer wrote:
Dod101 wrote:If young people are investing in ITs I am quite surprised because they are not the most dynamic of investments. Maybe like my grandchildren, they have inherited ITs from earlier bare trusts and so have not really 'opted for them' at all.

Dod


Err, Dod were you aware that a new IT heading for the moon, well at least in to space, is attempting to launch tomorrow?
"Seraphim Space Investment Trust"

I confess that when younger I invested in a investment trust aiming to trade options for profit. It didn't work out well.

However I do question your assumption about IT's. Given that I know you hold SMT, not known for being boring.


Thanks. I did not know about the IT heading for the moon, but the fact is that many ITs are boring, which is surely good. We do not want excitement from investment trusts, but long term investment horizons leading to good results on the whole.

Dod


Return to “High Yield Shares & Strategies - General”

Who is online

Users browsing this forum: No registered users and 7 guests