Trusts outperform equivalent fund 75% of the time - AJ Bell

AJ Bell found the trusts run by the same manager were cheaper than the open-ended funds in 60% of cases, with the average funds it looked at costing 0.97% versus a 0.91% fee on trusts. However, AJ Bell warned investors should brace themselves for higher volatility in trusts as a result of their use of gearing - in fact, trusts are more volatile than their fund equivalents 90% of the time. Laura Suter, personal finance analyst, said: "There's been lots of talk recently about whether investment trusts or funds are the better vehicle for investors, so we decided to crunch the numbers on c...