Investment trusts outperform sister funds over 75% of the time - AJ Bell

'Alarming' performance differential

clock • 1 min read

Investment trusts have outperformed their sister open-ended funds more than three-quarters of the time over the last decade, though are much more volatile, research from investment platform AJ Bell shows.

Over a ten-year period, investment companies have beaten funds run by the same investment management team 77% of the time, outperforming over one year 74% of the time. In some cases, investors could have made almost twice as much cash over ten years by investing into the close-ended version of a strategy than the open-ended version. In addition, the trust was the cheaper way to access the strategy 31% of the time, with the fund being cheaper 15% of the time. However, for some investors, caution would be warranted, as 89% of the time the investment trust option was the more volatile...

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