Where in the world to invest?

Where will you invest during 2025? Investment analysts, economists and other experts are full of suggestions – stock markets in the UK, continental Europe, the US and China, to name but a few, have all featured in pundits’ recommendations for the year to come.

In practice, your investment choices should be personal. They will depend on factors such as your attitude to risk, your financial goals and objectives, your time horizon, and the shape of your existing portfolio. Still, wherever in the world you’re looking for opportunity, an investment trust could be a good option for securing that exposure.

New data from Fidelity emphasises that message. The investment platform has just published statistics on the investment trusts that were most popular with its clients during 2024, and they could hardly be more varied. Trusts purchased on the platform range from funds investing exclusively in the UK to those exploring far-flung markets, and from conservative options to much more adventurous alternatives.

At the top of Fidelity’s top 10 sits Scottish Mortgage, the Baillie Gifford-managed investment trust. It has a stellar long-term performance track record, though returns have been more volatile in recent times, albeit with holdings in companies such as Nvidia, Amazon and SpaceX providing a boost in the second half of 2024. You might think of this fund as a conviction bet on the “growth” investment style, which focuses on companies expected to grow more rapidly.

Elsewhere, Fidelity says JP Morgan Global Growth & Income was also a very popular choice with investors last year, underlining the potential for investment trusts to offer access to a globally diversified portfolio of stocks. By contrast, the platform’s third most bought fund was Fidelity China Special Situations, which provides focused exposure to a single emerging market.

Closer to home, Fidelity European Trust also sold well, with investors looking for opportunities in continental markets. And the City of London Investment Trust, which focuses predominantly on large UK companies, was another fund in demand. It represents a more conservative option for investors pursuing a cautious approach.

Two technology sector-focused investment trusts, Polar Capital Technology and Allianz Technology Trust, also made Fidelity’s top 10. And the list also included Greencoat UK Wind, a different type of fund, offering a way for investors to back the UK’s renewable energy sector.

One way to look at this list of top-selling funds is to puzzle over its lack of consistency – no single investment theme or market dominates. However, that’s sort of the point here. The beauty of the investment trust sector is its diversity – every fund offers professional management and diversification, but the underlying investments vary enormously.

Moreover, with many of these underlying holdings, an investment trust offers major advantages over other types of collective investment vehicle. The closed-ended structure of the fund provides stability and liquidity even in markets where it can be difficult to buy and sell investments. Income flows can be managed for consistent dividend payments. And the governance of an investment trust requires there to be an independent board with legal duties to act in shareholders’ best interests.

In a year’s time, Fidelity’s list of popular funds will no doubt look different – and, to reiterate, the right option for you depends on your needs and goals, rather than what other investors are doing. Nevertheless, the breadth of Fidelity’s list is a reminder of the versatility of investment trusts. Wherever you’re looking for opportunity this year, an investment trust may be an attractive way to pursue it.