Page 8 - DIY Investor Magazine | Issue 31

Important information Risk factors you should consider prior to investing: • The value of investments and the income from them can go down as well as up and you may get back less than the amount invested. • Past performance is not a guide to future results. • Investment trusts are specialised investments and may not be appropriate for all investors. • There is no guarantee that the market price of a Trust’s shares will fully reflect its underlying Net Asset Value. • As with all stock exchange investments the value of the Trust shares purchased will immediately fall by the difference between the buying and selling prices, the bidoffer spread. If trading volumes fall, the bid-offer spread can widen. • Investment trusts can borrow money in order to enhance investment returns. This is known as ‘gearing’ or ‘leverage’. However, the use of gearing can result in share prices being more volatile and subject to sudden or large falls in value. Where permitted an investment trust may invest in other investment trusts that utilise gearing which will exaggerate market movements, both up and down. • The value of tax benefits depends on individual circumstances and the favourable tax treatment for ISAs may not be maintained. If you are a basic rate tax payer and you do not anticipate any liability to Capital Gains Tax, you should consider if the advantages of an ISA investment justify the additional management cost/charges incurred. • Emerging markets or less developed countries may face more political, economic or structural challenges than developed countries. This may mean your money is at greater risk. • Investing globally can bring additional returns and diversify risk. However, currency exchange rate fluctuations may have a positive or negative impact on the value of your investment. • Specialist funds which invest in small markets or sectors of industry are likely to be more volatile than more diversified trusts. Other important information: Issued by Aberdeen Asset Managers Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Registered Office: 10 Queen’s Terrace, Aberdeen AB10 1XL. Registered in Scotland No. 108419. An investment trust should be considered only as part of a balanced portfolio. Under no circumstances should this information be considered as an offer or solicitation to deal in investments. Find out more at www.abrdnchina.co.uk or by registering for updates. You can also follow us on Twitter or LinkedIn. GB-061021-158628-1 DIY Investor Magazine · Nov 2021 8