Investment trust 101: Discounts and premiums

An investment trust’s share price can fluctuate, so that it may be trading at either a discount or a premium to its net asset value.

FundCalibre’s Sam Slator explains what this means for investors and how they can use it to their advantage. See our other videos explaining gearing, revenue reserves, the role of an independent board and how an investment trust actually works. You can find more via our YouTube channel.

The views of the author and any people interviewed are their own and do not constitute financial advice. However the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Before you make any investment decision make sure you’re comfortable and fully understand the risks. If you invest in fund or trust make sure you know what specific risks they’re exposed to. Past performance is not a reliable guide to future returns. Remember all investments can fall in value as well as rise, so you could make a loss.