Closed-ended funds can be seen as more volatile than their open-ended rivals, but there are some that go against the grain and prioritise capital protection. FE's Joshua Ausden takes a closer look.
Most of the advantages of investment trusts benefit investors who have a longer time horizon. If you choose the right product at the right time, gearing and discount volatility tend to work in favour of closed-ended funds, even if the ride along the way is not entirely comfortable. Investment trust managers also tend to be given more time and freedom to express their ideas, which plays into the hands of longer-term investors who are able to stomach underperformance over shorter timescales. There is plenty you don't get from investment trusts that you do from funds, however. Bond spec...
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