AJ Bell warns of hidden gearing risks in investment trusts

Research published by AJ Bell has found that a total of eight UK-focused investment trusts have gearing of 20 per cent or more, meaning investors in these funds are exposed to more risk.

“While the investment trust industry does a good job in setting out the differences between open end and closed end funds, investors need to be aware that the trusts they invest in may have substantial levels of gearing,” says Laura Suter (pictured), personal finance analyst at AJ Bell.

Premium Content

To continue reading this content, please subscribe for free.