Cautious investors should hold a wide range of investment trusts

The two main strategies for cautious investors who want to hold investment trusts are to hold a mixed portfolio of investment trusts and other assets or to hold a wide range of investment trusts

Cautious stock market investors have long recognised the value of investment trusts as a reliable long-term investment. But in an industry which has undergone many transformations, how can an investor ensure that he or she is keeping risk to a minimum while still generating good returns five, 10 or 20 years down the line? The investment trust industry has come a long way over the past 150 years or so. Although it has changed gradually since the launch of the first investment trust in 1868, the Foreign & Colonial Investment Trust, the bulk of the change has occurred in the last two decades....