With US stocks trading close to all-time highs, valuations looking stretched and one of the narrowest markets on record, this could be an opportune moment to consider adding some defensive qualities to your portfolio through capital preservation funds and trusts.These products aim to protect your capital during periods of heightened volatility and equity market drawdowns as well as growing capital

It can seem daunting to know where to start when making a first investment which may deter some people from starting at all. This would be a mistake because the sooner a start is made, the longer an investment is allowed to mature and provide capital gains and dividends.Waiting just a few years can reduce the potential saving pot over the long term. For example, assuming an investment of £100 a m

Capital preservation funds are positioned to help investors avoid large losses while growing their wealth too, albeit more slowly than more risk-tolerant funds. In the investment trusts patch, the three main wealth preservers are Ruffer Investment Company (RICA), Capital Gearing Trust (CGT) and Personal Assets Trust (PNL), while RIT Capital Partners (RCP) also has a capital preservation bent.Durin

We are weeks away from the end of the tax year and inevitably there is plenty of focus on ISAs ? whether that relates opening an account or using up existing allowances.In all the hoo-hah it?s easy to lose sight of just what a compelling vehicle this is for investors. Whatever you are investing for, whether it?s the cost of the kids? education, to supplement your income in retirement or to fund ho

Investors sought haven trusts over the past monthCapital preservation trusts proving popular amid geopolitical instabilityUK-focused trusts disappoint as FTSE 100 stallsConflict in the Middle East, an ongoing war in Ukraine, stubbornly high inflation and interest rates… it is no wonder investors have been positioning portfolios for a rocky ride ahead.Names with a reputation for low-risk investme

According to data from the AIC, the average investment trust discount to net asset value has widened from 12.2% at the end of 2022 to 14.5% as of 8 September 2023, while sector averages have generally widened. The exception is private equity, which narrowed from 25.1% to 4.5%, skewed by 3i's (III) dramatic swing from discount to premium.While this presents an opportunity to buy into parts of the m

Investors often fall into two camps. Some look to build wealth for the long term, while others want to protect wealth they have already accumulated, and this latter objective is what capital preservation funds are primarily designed for.There are three main investment trusts in the capital preservation space, namely Capital Gearing Trust (CGT), Ruffer Investment Company (RICA) and Personal Assets

Full-year pre-tax profit of £44 millionNet asset value per share dips 2.2%Committed to dividend of 5.6p per shareCapital preservation trust Personal Assets (PNL) reported a pre-tax profit of £44 million and a fall of 2.2% in net asset value (NAV) per share compared to a rise of 2.4% in the FTSE All-Share Index for the year ending 30 April 2023.Personal Assets lead fund manager Sebastian Lyon sai

- Bank crisis sends markets tumbling- Capital preservation funds back in focus- Technology shares surge as bond yields fallIt has been a brutal week for banks amid fears of contagion risk from the failure of Silicon Valley Bank and rescue of Credit Suisse (CSGN:SWX) with knock-on effects across stock markets.The FTSE 100 has lost 4% while the domestically focused FTSE 250 is down around 3%. The ba

Alena Kosava, head of investment research at AJ Bell, offers a selection of fund and investment trust ideas for different types of investors.One for cautious investorsPersonal Assets Investment Trust (PNL)Personal Assets is a solid choice for investors looking to protect and increase the value of their investment over the long term. The trust has generated steady returns over the years and tends t

Looking into 2023 after a tricky year for the markets and investors are still presented with a significant amount of uncertainty around interest rates, inflation, recession, war and more.For those who want exposure to stocks but with a measure of protection, investment trust Securities Trust of Scotland (STS) looks a sensible option.WHY THE TRUST HAS A CAUTIOUS APPROACHThe investment manager Troy

There is an old saying that no-one rings a bell when the market is at the top, but by the same token neither is there a clear-cut signal to buy when markets reach the bottom.Yet after a brutal year for stocks - and a particularly tough third quarter - it is beginning to feel as though the worst of the sell-off is in the rear-view mirror and investors should be looking for bargains.However, if we a

Shares in premium drinks maker Diageo (DGE) are down 8% year-to-date amid worries over a global recession and soaring raw material costs. Also weighing on the price have been fears that drinkers might trade down to cheaper beverages as inflation squeezes consumer budgets, at least in the short term.Yet over the long term, Diageo is ideally placed to prosper from growth in premium drinks. With Diag

It is becoming increasingly likely that major economies around the globe will plunge into a full-blown recession this year, the UK included.Analysts and economists fear the global economy's growth momentum will grind to a halt as central banks continue to raise interest rates in a desperate attempt to combat high inflation.If the UK and other major economies do fall into recession, what can invest

There are dozens of different investment strategies, but most investors are largely looking to either build wealth for the long run or look after what they already possess. This latter objective is what capital preservation funds are designed to do.There are a handful of specialist investment trusts which fall under the capital preservation banner, including Capital Gearing Trust (CGT), Personal A

Recession concerns have been seeping into the investment narrative in recent weeks. The war in Ukraine has exacerbated supply shortages and added unexpected fuel to the inflationary fire.Inflation in basic non-discretionary goods crimps spending elsewhere and could put a big dent in the expected nascent global recovery.While recession isn't the base case for most economists, investors may do well

A high price can stop investors from buying a particular stock, simply because they cannot afford it. Not everyone has the $1,000+ which it costs to buy a single share in many US-listed companies. It's a long-standing frustration but slowly we are seeing solutions to the problem.Amazon has joined the likes of Alphabet, Apple and Tesla in doing a 'stock split'. Each existing Amazon share will be re

For now, the escalating conflict in Ukraine shows no signs of easing. After the initial shock, markets were hopeful the economic impact of the war might be contained as the West's opening salvo of sanctions in response to Russia's invasion (24 Feb) were weaker than some had anticipated.However, any relief soon dissipated as Ukraine put up stiff resistance against the Russian invaders and sanctions

A global equity markets sell-off at the start of 2022, driven by concerns over hot inflation and rising interest rates, together with growing tensions between Russia and Ukraine, has left many investors nursing significant portfolio losses.Those with exposure to the technology-rich Nasdaq index across the pond have endured a particularly punishing 2022 so far, as monetary policy tightening, accele

Ryan Hughes, head of investment research at AJ Bell, picks eight funds and investment trusts with different risk levels covering bonds, global equities, infrastructure, healthcare and dividends.Cautious investors: Personal Assets Investment Trust (PNL)5-year annualised return: 6.68% (source: Morningstar)I'm sticking with the Personal Assets trust for the third year in a row, particularly as the ec