A number of advisers also warn that, while investment trusts are sometimes considered risky in the short-term, they are capable of achieving outperformance in the longer term.
While the hunt for higher yields continues to drive investors’ decisions, investment trusts could prove to be an attractive option, especially for those looking to park their retirement pots.
“It is a value judgement you make as to whether investment trusts are inherently risky,” says Mr Best. “They have the potential to be but you have to make a judgement based on the size of the discount, what it is invested in, where the market is going. It is quite a complex calculation before you actually decide to include investment trusts but almost all my clients have an element of investment trusts, even quite low-risk clients.”
While the sector returns better yields over a longer-term period, it could fit well with an investor’s ongoing plan for a better and more comfortable retirement.
