Forget buy-to-let! I’d buy the UK’s two most popular investment trusts to make a million

first_img Enter Your Email Address “This Stock Could Be Like Buying Amazon in 1997” Our 6 ‘Best Buys Now’ Shares John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Amazon, Netflix, and Tesla. The Motley Fool UK has recommended Diageo and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Forget buy-to-let! I’d buy the UK’s two most popular investment trusts to make a million Harvey Jones | Sunday, 12th January, 2020 | More on: CTY SMT Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee.center_img See all posts by Harvey Jones Image source: Getty Images. Simply click below to discover how you can take advantage of this. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. I always fancied owning a buy-to-let or two, but feel like I’ve missed the boat. 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They will not call you up in the middle of the night and ask you to fix a dripping tap, for example.I’m a huge fan of investment trusts as the very best have a fantastic track record of delivering stock market growth and constantly increasing their dividends. New figures from the Association of Investment Companies show I’m not alone, and the two most searched for investment trusts are both favourites of mine – Scottish Mortgage Investment Trust (LSE: SMT) and City of London Investment Trust (LSE: CTY).Scottish MortgageScottish Mortgage was the most viewed investment company for the third year in a row, and with good reason. The FTSE 100-listed investment company has smashed its benchmarks to return an incredible 509% over the past 10 years. If you had invested £10,000 a decade ago, you would have £60,900 today.This £8.5bn behemoth invests in a high-conviction, global portfolio of companies, with the aim of achieving a greater return than the FTSE All World Index.My one concern is that it is heavily invested in the US, 53% of its portfolio, to be precise, and has been flattered by the country’s lengthy bull run. Its top 10 holdings include big names such as Amazon, Tesla Motors and Netflix.It could struggle if the US market falls, as it must do one day. However, around 20% of its portfolio is in China, where it holds Alibaba Group and Tencent Holdings, and 18% in the eurozone. With just 2.3% exposure to UK equities, it gives you ample diversification from our home market.Better still, Scottish Mortgage has a low ongoing charges fee of just 0.37%. The downside is that it trades at a 1.4% premium to net asset value, although that is actually lower than its long-term average of 1.7%. The yield is just 0.54%. If you still believe in the US stock market, this could be a good place to buy into it.City of LondonCity of London is also well worth a look. Over 10 years, it has grown 176.5%. That is less spectacular than Scottish Mortgage, but it operates in a different sector, UK equity income, which hasn’t done as well as the US. This is a great income fund though, currently yielding a generous 4.28%.This £1.7bn fund also has low ongoing charges of just 0.39%, and trades at a premium of 1.9% to net asset value, slightly higher than its long-term average of 1.2%.Top 10 holdings are a roster of familiar names – Royal Dutch Shell, HSBC Holdings, Diageo, BP, Lloyds Banking Group and others you will recognise.Scottish Mortgage and City of London operate in different sectors, and could complement each other very nicely as part of a balanced portfolio.last_img

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