Investment trusts

By THIS IS MONEY
Updated:

 

I have £10,000 to invest in investment trusts and am willing to take a degree of risk over one to three years. What would you advise? L.R. Nottingham

Patrick Connolly at independent financial advisers Chartwell Investment Management says: Investment trusts invest in shares and you need to be prepared to invest for at least five years. Share prices tend to go up over the longer term, but if you take a short-term view there is a very real chance that you will not get back all your £10,000. If you proceed down this route you must be prepared to take a high level of risk with your money or delay your access to it.

If you want access to your money at short notice, stick to an easy access bank or building society account. You can earn higher rates if you go for a fixed rate bond where you have to tie up your money for one, two or three years either with banks or building societies, or, if you are a tax payer, guaranteed income bonds offered by insurance companies.

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