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Are you looking for the best investment trusts to buy for long-term growth and dividend income? Here are three that I think investors should consider taking a closer look.
JPMorgan Global Growth and Revenue
He JPMorgan Global Growth and Revenue (LSE:JGGI) Trust does exactly what it says on the label. Invest in a variety of global stocks (usually in the 50-90 range) to drive capital appreciation and generate decent dividend income.
Last year, the trust increased its annual dividend by 23.6%, an increase helped by its large distributable cash reserves.
As with many pooled investments, it has large holdings in US technology stocks for growth. microsoft, amazon, NVIDIAand Goal are (in order) his four largest holdings. In total, just over a quarter of its capital is distributed among semiconductor manufacturers, software developers and hardware manufacturers.
But unlike some trusts, this one from JP Morgan uses borrowed funds to strive for superior returns. While the presence of leverage like this can amplify investors' gains, it can also exacerbate losses if the trust performs poorly.
BlackRock Global Mining Trust
He BlackRock Global Mining Trust (LSE:BRWM) offers investors a more targeted approach. In this case, it is designed to generate profits as the demand for raw materials constantly grows.
That said, the trust's exposure to the mining sector extends far and wide. About 60% is invested in mining companies with global operations, a quality that helps it absorb turmoil (such as political instability and conflict) in certain regions. Multinational operators BHP, Rio Tintoand Glencore They are some of the largest of its more than 60 holdings.
Additionally, this BlackRock product provides exposure to a variety of industrial and precious metals, including copper, iron ore, and gold. As a result, investors can enjoy a multitude of growth opportunities, as well as stable profitability throughout the economic cycle.
The trust could be a great way to capitalize on long-term themes such as increasing digitalisation, clean energy growth and ongoing urbanisation. However, volatility in commodity markets could impact investor returns year after year.
Witan Alliance
Witan Alliance (LSE:ALW) is one of the oldest investment trusts in the world. And for dividend hunters, it could be one of the best to consider.
It has increased the annual dividend for 57 years in a row.
This is another joint vehicle with significant stakes in technology giants such as Alphabet and NVIDIA. But with strong exposure to other sectors such as financials, consumer goods, healthcare and telecommunications, it also owns a number of companies known for paying large and growing dividends.
Famous dividend payers in your portfolio include Unilever, Philip Morrisand Coca-cola.
In total, the trust has stakes in about 200 companies around the world. And that is why it provides greater diversification than many other investment products. But keep in mind that its high exposure to cyclical industries could still generate low returns during economic downturns.
