2 investments trusts I’d buy for growth

first_img Our 6 ‘Best Buys Now’ Shares Image source: Getty Images. 5 Stocks For Trying To Build Wealth After 50 Andy Ross owns shares in Scottish Investment Trust. The Motley Fool UK has no position in any of the shares mentioned. 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. Andy Ross | Friday, 10th July, 2020 | More on: SCIN USA Enter Your Email Address 2 investments trusts I’d buy for growth 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 Markets around the world are reeling from the coronavirus pandemic…And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! Simply click below to discover how you can take advantage of this. See all posts by Andy Ross 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. Most investors will have seen plenty of news in recent months that dividends are under pressure. Even at investment trusts there’s pressure on the shareholder rewards because so many companies are scrapping or cutting their dividends. Yet, trusts remain one of the more reliable ways to access a dividend payment, often quarterly. Many also offer the potential for growth of your investment as well. Here are two that I’d buy for my portfolio.The trust that runs against the packScottish Investment Trust (LSE: SCIN) is one such investment trust. The contrarian approach of the managers means the trust is risky but has plenty of potential for growth.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…The trust has massively upped its stake in gold, with the top holdings including Newmont and Barrick Gold. Top holdings from the UK include defensive shares such as United Utilities, GlaxoSmithKline, and Tesco. If you think difficult times lie ahead then this could be a good trust to own.In a blog in June, the manager said: “Governments now seem determined to create growth and, we suspect, will show increasingly greater tolerance for inflation. This would be a favourable backdrop for a contrarian investor.”A dividend yield of 3% is steady if unspectacular. In these challenging times, I’d see that as a win if it can be sustained.I also think there’s a margin of safety in buying the shares right now, as they are trading at a discount of around 11% to net asset value. The shares seem to have the potential to provide both income and growth.A very different type of trustBaillie Gifford US Growth Trust (LSE: USA) is a very different kettle of fish. Managed by Baillie Gifford – an investment outfit that is a big backer of Tesla – it unsurprisingly focuses on highly rated US stocks. It also has a strong tech slant to it.Top holdings currently include the likes of Shopify, Amazon, Tesla, and Wayfair. Amazon’s price-to-earnings is over 100, which is astronomical, but it would be brave to bet against the shares right now and against the company continuing to grow. This is why I think investors are piling directly into the shares and also into trusts and funds that are holders of the shares. Technology has been one of the winners from the pandemic.The Baillie Gifford US Growth Trust’s share price reflects this excitement, so it’s hardly a hidden gem. So far this year, the shares have risen by 60%. I think they could go further. The shares don’t pay a dividend and trade at a premium to the net asset value, so in some ways are riskier for investors. To invest you’d need to be confident that US tech companies will keep growing strongly.Scottish and Baillie Gifford US Growth Trust are very different trusts in many ways, but I think they complement each other well. The manager styles are complete contrasts, and yet both have done well since the stock market lows of March. As such I think both these investment trusts are ideal for growth.last_img read more