With the New Year just around the corner, now is a great time for me to look at additions for my portfolio for 2022 and beyond. One standout for me in this respect is F&C Investment Trust (LSE: FCIT). Since I last looked at FCIT back in July, the share price is up 7%. And the stock has seen healthy growth of 15% year-to-date.

I have always been an advocate of investment trusts, as they offer exposure to a variety of sectors in a single investment. As such, here’s why I would buy shares today.

The portfolio

The main reason I like F&C is because of its diverse portfolio. With nearly £6bn in assets under management, investing in over 400 companies globally, the trust adds real range to my portfolio. As of October 2021, its top holdings included Alphabet, Goldman Sachs, and Apple. All three of these stocks have seen at least 20% growth in price this year, showing the potential of the trust’s portfolio.

What I also like about it is its investment style. Simply put, it buys for the long term. And for me, this is perfect. It means issues surrounding volatility that may be experienced in the short term are less relevant. The trust has prospered under the guidance of manager Paul Niven, who has been at the helm since 2014. The last five years have seen a return of 70%, showing the positive impact he has had.

On top of this, the trust, founded in 1868, is the oldest in the world and therefore has stood the test of time. Its bounce-back from the crash we saw in March last year is proof of this. This is a major factor when I think about adding it to my portfolio.

My concerns

With this said, I do have concerns about F&C. It third-largest asset allocation is emerging markets (9.2%). And as much as I see value here, the spread of the Omicron variant globally could have a negative impact on these markets. Cases have been confirmed in countries such as India and Brazil, both states that have struggled to contain Covid, even prior to the emergence of Omicron. However, as I mentioned above – these short-term periods of volatility should not pose a long-term threat. The trust has a proven track record over long periods, and I think its weighting in emerging markets will eventually bear fruit.

Why I’d buy

Although investor confidence may have taken a hit as we see Omicron impact our lives, F&C has proved it can weather storms such as these. The main attraction for me is the diversity it offers to my portfolio – and while past performance does not guarantee success in the future, for me it provides a good indication. Its record shows it has the potential to continue to flourish. As such, I would look to buy shares today and hold them for the long run.

The post Why I’d buy this top investment trust in 2022 appeared first on The Twelfth Magpie.

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Charlie Keough has no position in any of the shares mentioned. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Apple and Microsoft. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

My tip would be to start investing tax-free through a Stocks and Shares ISA allowance. While stock markets can be volatile in the short term, I’d tip equities to beat almost every other form of investment in the longer run, making them the ideal way to build retirement wealth.

Investment trusts are an underrated way to tap into this growth, as they regularly outperform rival fund types. These two global trusts could help you towards a target of doubling the income you get from the State Pension.

F&C Investment Trust

F&C Investment Trust (LSE: FCIT) invests in a spread of global stocks, giving you an instant, internationally-diversified portfolio of publicly-listed equities, unlisted stocks and private equity. Launched in 1868, this is the world’s first collective investment vehicle with a tremendous pedigree.

Despite its long history, the £4.5bn fund remains sprightly today, its share price rising a bumper 99% in the last five years, easily beating its benchmark FTSE All-World index.

It gives you exposure to a spread of globally-renowned stocks, including US tech giants Amazon, Microsoft, Google-owner Alphabet, Facebook and Apple, as well as Visa, MasterCard, BP, Unilever and AstraZeneca. In total, it holds 450 companies, giving you a cushion if some of them underperform.

F&C currently yields around 1.5% but has a proud record of increasing its dividend payout ahead of inflation, boosting its value in real terms.

I’ve been an investment journalist for around 25 years, and F&C has been there throughout, doing what it does best… making investors richer. I reckon it should continue to do that over the next 25 years, taking you into retirement and beyond.

JP Morgan Emerging Markets Investment Trust

You could supplement it with a fund that zones in on the faster growth opportunities available from emerging markets. JP Morgan Emerging Markets Investment Trust (LSE: JMG) has also thumped its benchmark index, its share price climbing 91% over the last five years. If you had invested £10,000 in this 10 years ago, you’d have £24,145 today.

The trust contains big-name emerging market companies such as Taiwan Semiconductor, Chinese giants Tencent and Alibaba, and Tata Consultancy Services, giving you exposure to companies you might probably never buy as individual stocks.

A third of the fund is invested in China, which makes recent performance even more impressive, given the trade war with the US. It also gives you exposure to India, Taiwan, South Africa, Brazil and other emerging stars. The current yield is 1.32% but, again, you can expect dividend payouts to steadily increase over the years.

Whatever your age, these two trusts could help you build a passive income in retirement to supplement the State Pension, which isn’t enough on its own.

The post No savings at 40? I’d buy these 2 investment funds to double my State Pension appeared first on The Twelfth Magpie.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Alphabet (A shares), Amazon, Apple, Mastercard, Microsoft, Unilever, and Visa. The Motley Fool UK has recommended AstraZeneca and recommends the following options: long January 2021 $85 calls on Microsoft and short January 2021 $115 calls on Microsoft. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.