Investments  

Insight: Global investment trusts

What are the risks to consider?

While the risks are many, over-reliance on equity investments is one of the biggest. Equity markets face volatility due to market events, which in turn could impact the performance of the fund.

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How do trusts hedge currency risks?

Since funds in this sector invest across the world, they face currency risk. But fund managers hedge against exchange rate fluctuations using instruments like forward contracts and options.