A place to grow: gardens and investments

Woman's hands gently planting small sapling

Gardeners who want to nurture green spaces and financially futureproof their family will discover some interesting parallels

What should a horticulturist consider when planning the long-term growth of a garden? A wise gardener will take time to plan, assessing the site, aspect and soil. Next is preparation and choosing a planting plan that includes plenty of interest over the seasons. Then nurture: tending to the garden over time to enjoy its benefits for many years.

This approach to cultivation is similar to financially futureproofing your family. By making sound investment choices for long-term growth, and with careful preparation, planning, care and attention, it’s possible to assure greater financial stability for your loved ones, and preserve and grow your wealth.

But how to invest for future generations? What are the risks and how can investors make sound decisions?

The AIC, founded in 1932, is the trade body that represents investment trusts. It provides guidance and education for investors looking for long-term growth for the benefit of the family.

Read on to discover more about how to grow with investment trusts.

Laying the foundations for healthy investments

Senior couple look out over their garden

Just like a garden that has been cultivated to be enjoyed for years to come, a financial investment benefits from stability in order to produce returns. Investment trusts take a long-term approach, giving them the potential to deliver strong financial results over many years.

The long-term performance records of investment trusts are outstanding. The average trust has transformed an investment of £1,000 into £2,740 over the past 10 years. Over a 20-year period, that £1,000 investment has grown to £8,202*.

The French poet and playwright Moliere said, “Trees that are slow to grow bear the best fruit.” With trees and investments alike, patience is undoubtedly a virtue. An investment trust takes a patient approach to growing shareholders’ wealth, in line with many families’ time horizons.

A sound investment that has been managed well will also pay dividends. Investment trusts have the flexibility to retain up to 15% of the income they receive in good years and use it to boost dividends in leaner ones.

Discover more

Cultivating innovation: gardens and investments

Purple flowers in foregroung being watered by a woman holding a green watering can

Transforming a garden into a rich, thriving space requires balance. Testing out a variety of approaches and different combinations to produce the best results. Investment trusts also support innovation by investing in a diverse range of assets from UK equities to global equities, property to private equity. Diversification reduces risk and maximises growth potential.

Investment trusts also give private investors access to hard-to-invest in areas, such as renewable energy, venture capital, infrastructure and space technology.

Mother holding up her 5-year old son who is reaching out to pick an apple from the tree

Futureproofing for all the family

There is a broad range of tax efficient products available to support financial stability for your family including ISAs, Junior ISAs (JISAs) and self-invested personal pensions (SIPPs), all of which are available from UK investment platforms.

If you’re ready to apply the principles of gardening to your investments then the AIC can provide a wealth of information to help guide the way.

Discover more

*Source: The AIC / Morningstar. Past performance is not a guide to future returns. Investments can go down as well as up, and you may not get back the amount originally invested.