Investment Trusts14 Nov 2019 19:24
Hi all,
I wish to have a diversified investment portfolio. I am trying to do things right for the first time in my wretched life. Anyhow, my local (to the UK that is) investments comprise of shares, index trackers and cheap ETF.
For my external UK exposure I am looking at investment trusts. Such trusts are traded on the LSE as shares. So, would I be correct to assume that although I may invest in a global or Euro investment trust in terms of it's owned assets and benchmark because they are traded on exchange, prices may well drop when there is a broad FTSE selloff that impacts all shares.
And that therefore they do not in principle provide the means to support a diversified portfolio in the way that mutual funds do...? Prices are impacted or correlated to the FTSE in other words.
Thank you in advance for any thoughts.
Fig