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Investment Trust Beginners Question

Investment discussion for beginners. Why you should invest your money, get help getting started
bluedonkey
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Re: Investment Trust Beginners Question

#419696

Postby bluedonkey » June 15th, 2021, 2:46 pm

nmdhqbc wrote:
evilbungle wrote:Anyone have any recommendations of good places to learn some basics as clearly my initial research was lacking?


i just searched "investment trust vs open ended fund" on youtube and watched the video below. seems like a pretty good overview. the only thing he fails to mention is that IT's do not have to pay out all of their income each year. they can hold some back for the bad years allowing many to have long records of increasing the dividend each year. to avoid confusion i had for a long time - they normally just keep the retained income invested, not in cash.

https://www.youtube.com/watch?v=jp7Pcs_Vk9E

True, as is the opposite. ITs can pay out as dividends more than their income. There was a thread recently about the minority of ITs that do this.

GrahamPlatt
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Re: Investment Trust Beginners Question

#419716

Postby GrahamPlatt » June 15th, 2021, 3:38 pm

It may also be worth pointing out to the OP that there’s a board dedicated to Unit Trust and Investment Trusts - one might begin here: viewtopic.php?f=54&t=17061

TUK020
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Re: Investment Trust Beginners Question

#419731

Postby TUK020 » June 15th, 2021, 4:37 pm


GrahamPlatt
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Re: Investment Trust Beginners Question

#419732

Postby GrahamPlatt » June 15th, 2021, 4:37 pm

Also worth looking at this:

viewtopic.php?f=31&t=29685

Bubblesofearth
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Re: Investment Trust Beginners Question

#419852

Postby Bubblesofearth » June 16th, 2021, 8:18 am

When buying any share based investment ask who gets paid and how much. If you buy individual shares you pay a broker the cost on purchase. If you buy them in an ISA you pay a broker more, cost on purchase plus holding cost. If you buy a collective then you pay a manager as well.

So buying shares in a collective will cost more than buying them 'naked'. This cost may be disguised as higher risk but it will be there somewhere. Collectives are not normally set up as charities to benefit shareholders.

BoE

evilbungle
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Re: Investment Trust Beginners Question

#420175

Postby evilbungle » June 17th, 2021, 1:30 pm

Thanks all for your great advice and all the links to places to find out more, very helpful and what makes LF such a great resource for those of us who wish we knew as much as you wise sages :D

mc2fool wrote:It's normally best practice to find out about an investment before you buy it. :D


Yes, I agree, I did spend some time trying to understand it but in the end I decided just to go for it based on some recommendations assuming that what I needed to know would become clear as I went (Which is what has happened) to be fair each of these holdings make up about 1/4 of my usual holding (and about 1% of total assets) so if I lose the lot it isn't too tragic.

Dod101 wrote:There are or have been numerous threads re the differences between OEICs, Unit Trusts and ITs and it would be well worth while for the OP to find them and read them. In fact now that I think about it it is a shame that there is not a permanent, easily accessible record on this site, because it is one of these subjects that crops up regularly.
Dod


Yes, I have started a few of them with other queries before I brought them as there was lots I wasn't sure about when I started, the whole issue of OEIC, UNIT Trusts and ITs just didn't come up, I guess the thing is you don't know what you don't know until you know that you don't know it (Makes perfect sense, right?)

GrahamPlatt wrote:It may also be worth pointing out to the OP that there’s a board dedicated to Unit Trust and Investment Trusts - one might begin here: viewtopic.php?f=54&t=17061


Thanks Graham, I will keep an eye on that board from now on, to be honest I did look at that board before I made the purchase back in 2019 but it is very much about specific funds and what is happening with them where as my queries have always been far more basic, hence coming to the How do I invest board.

Dod101
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Re: Investment Trust Beginners Question

#420194

Postby Dod101 » June 17th, 2021, 2:16 pm

evilbungle wrote:
Thanks Graham, I will keep an eye on that board from now on, to be honest I did look at that board before I made the purchase back in 2019 but it is very much about specific funds and what is happening with them where as my queries have always been far more basic, hence coming to the How do I invest board.


NOt addressed to the OP but I do wonder if it is not a good idea for there to be some basic guides on this site, or maybe a 'Best of' Board so that newbies (we all have started at some time) could be referred to a particular Board or post or whatever.

Anyway to the OP. As I said we have all got to start somewhere and frankly the best experience is actually what you have done I think; buy something and get experience of hands on investing. You will have a few, possibly expensive, lessons on the way but that is OK, you will not make the same mistake next time.

Good luck,

Dod


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