How investment trust discounts can boost your long-term income

I often wax lyrical about bargain hunting among investment trusts trading at a discount – that is, trusts whose shares trade for less than Net Asset Value (NAV). Think buying £1 coins for 90p. We’ve also written reams over the years on investment trusts as a potential source of steady income. Former Monevator contributor The Greybeard had a lot to say about it – although he grew frustrated by the relentless pushback from hardcore passivistas. More recently I’ve launched an investment trust income model portfolio for Moguls members. I won’t rehash the whole active/passive debate with respect to income today. If you’re a passive investor but you have an open mind, I’ve written a Mavens post on using ETFs to do much the same. But if you’re a global equities tracker and drawdown diehard, probably best to wait for the next article! Give peace a chance Just briefly for those on the fence – or simply confused – I’m not saying the average person would do better stock picking investment trusts…