You can narrow down the choice from the hundreds of investment trusts to choose from by being clear about why and how you are investing.
What do you want from your investment?
Are you looking for regular income or are you putting money away for a longer term investment (capital growth) - or a combination of the two? There are different investment trusts available to provide one or the other, as well as some designed to provide a combination of the two.
Will you invest a lump sum or make regular payments?
You can invest directly in an investment fund using a lump sum investment, however if you prefer to make smaller, more regular payments then investing in a 'wrapper' product like an ISA is probably more suitable.
How much risk do you want to take?
The level of risk you are prepared to accept depends on how long you can tie up your money. If you have got time on your side, you will have the advantage of being able to invest over the longer term (which usually attracts a greater return even from basic interest payments), or be able to increase the risk taken in exchange for the potential of higher returns.
Do you want to invest in a particular sector?
A large number of investment trusts only invest in a specific sector, such as IT. This allows you to pick particular sectors or types of company to invest in.
