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Industry experts offer investment ideas for the long term

Industry experts offer investment ideas for the long term – 10 investment funds to buy and hold for 30 to 40 years

November 27, 2019 by Jennifer Hill

An investment made on behalf of a grandchild stands to last a lot longer than the latest must-have gadget or piece of plastic tat, especially for those who take a very long-term view and are prepared to invest for a 40-year timeframe.

The idea of such a long timescale may not be feasible for those grandparents who wish to help with the high costs associated with getting on the first rung of the property ladder. But those who want to help their young grandson or granddaughter in three or four decades’ time will be able to invest at the top end of the risk scale.

Furthermore, the potential rewards from such a long-term view would provide your grandchild with a meaningful pot at a time when they are likely to face growing financial pressures, from having a family of their own and/or upsizing their property to thinking about saving more for their retirement.

..We asked financial advisers, wealth managers, multi-managers and fund analysts to pick their ideal fund for a 40-year timeframe, with some interesting results.

10 funds to buy and hold

…Capital Gearing Trust

Such a long-term timeframe requires built-in flexibility to accommodate potentially sweeping changes to the investment landscape. That’s why James Carthew, research director at investment trust research company QuotedData, would opt for a fund from the Association of Investment Companies’ flexible investment sector, which can hold a range of asset types.

“It has been the best performing investment trust of any type over the past 37 years,” he says. “Its focus on avoiding losing money should offer a smoother ride, its zero-discount policy helps avoid wild swings in discounts and premiums, annual costs are just 0.7% and its current bias towards securities that offer some protection against inflation is an additional comfort.”

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