Rather than make a shoddy attempt at describing what an investment trust is, it would be far better if you checked out Monevator’s excellent explanation here.
My current portfolio includes mutual funds, index trackers, shares, cash, peer-to-peer lending but no investment trusts.
Or so I thought.
Last month, I ‘found’ that I had a little equity income fund that was neither in my SIPP nor NISA.
I’ve now ‘found’ an investment trust which I started back in 1997, investing in Japan! Bear in mind that during this time, I had big credit card debts and had just bought a house, so quite what I was doing investing instead of paying off my debts is anyone’s guess! Incidentally, I only found out what investment trusts were recently so guess who was investing in something they didn’t understand…ahem!
I recall that I used to get dividend cheques posted to me but I switched so that they were paid straight into my bank account. I guess you could say I didn’t any pay attention to these until when I recently went through my bank statements properly (to check my gambling spending) and saw last year’s dividend payment!
My original investment was £300 – I was in debt so didn’t have much to invest and yes, I know now that I shouldn’t have been investing at all! I wasn’t great with my personal finances previously and evidently, my filing/paperwork left a lot to be desired!
Anyway, it’s now worth £770! Seems like it’s done ok in the last 10 years.
Now that I can check its value and progress online, I’ll include it in my figures and will invest the dividend payments – £9.32 this year.
Right, I’m certain that I don’t have any other investments lurking about but I’ll post if I find any more!