Investment trusts are a great way to invest in the market quickly. They are actively managed investment companies that own portfolios of stocks.

This means it’s easy to buy one company and get exposure to a whole basket of different stocks spread across sectors and industries.

Buying trusts also enables investors to buy exposure to sectors or regions they may not necessarily be able to invest in themselves. 

Investment trusts to buy 

I think one stock market sector that will do well over the next few decades no matter what happens to the global economy is healthcare. According to current projections, global healthcare spending could hit $10trn by 2022, up from around $8trn in 2018. 

The US is by far the world’s largest market for healthcare spending, and this is where some of the best businesses are located. That’s why I’d buy the Worldwide Healthcare Trust (LSE: WWH) for a small portfolio of investment trusts. I already own this stock in my portfolio for the same reasons.  

This trust, as its name suggests, can invest all over the world. US stocks make up two-thirds of the portfolio, and 11% is in Chinese equities. The rest is spread around the world. The largest holding is Boston Scientific.

As well as its international diversification, the trust is also managed by a specialist healthcare investment manager, which can bring levels of experience to the table that I could not. 

The international diversification and specialist experience are the two reasons I would buy this for my portfolio of investment trusts. 

This approach might not be suitable for all investors because it requires a level of trust in the investment manager. If the investment manager makes poor investment decisions, the returns of the trust could suffer. Some investors may not be comfortable with this approach. 

Global growth 

The other firm I’d buy for my portfolio of investment trusts is JPMorgan Global Growth and Income (LSE: JGGI). 

Once again, this is a trust I already own and would happily buy more of.

JPMorgan’s offering invests in stocks around the world that its managers believe can generate outstanding performance. Its track record of finding these businesses is pretty good. Over the past five years, the stock has returned 118%. Its top holding at present is Google’s parent company, Alphabet. 

However, it does command a performance fee. Its managers are paid a performance fee of 15% if the trust outperforms its benchmark index. High-performance fees can eat away at returns, so many investors might not be comfortable owning the trust as a result. 

Still, I’m happy to pay managers a performance fee if they continue to achieve outstanding returns. As well as capital growth, the stock also supports a dividend yield of 3.2% at present. That’s why I’d buy this stock for my portfolio of investment trusts with £2k today. 

Going for growth

These three aim to deliver a combination of growth and income, to build your wealth while working and deliver income after you have stopped.

Perhaps the most exciting is JP Morgan Global Growth & Income (LSE: JPGI), the best performer on the Global Growth & Income sector measured over 10 years, up 257% in that time, and also over five years, when it returned 91%, according to Citywire. Past performance is no guarantee of future success, but management is clearly doing something right.

Income for sale

This £425m global fund was launched in December 1964 and aims to outperform the MSCI All Country World Index over the long-term with a high conviction portfolio of typically 50-90 stocks, built through research-driven bottom-up stock picking.

The trust aims to pay dividends totalling at least 4% of its net asset value each quarter, and currently yields a generous 3.68%. It trades at a small premium of 0.95%, which is a sign of a fund in demand. Check its top holdings against your own portfolio for clashes: 4.6% of the fund is in Google-owner Alphabet, with other US stocks Microsoft, United Health Group, Pioneer Natural Resources, Union Pacific, Citigroup and Visa figuring strongly.

Global reach

My next tip is another global trust, Invesco Perpetual Select Trust Global Equity Income (LSE: IVPG). Again, it aims to deliver long-term income and capital growth through a globally diversified portfolio of stocks. Launched in 2006 this is a smaller fund with just £68m under management but is another top performer returning 187% over 10 years, and 72% over five.

This is around 35% invested in Europe and also the US, with 18% in the UK, and the remainder in Asia-Pacific and Japan. The top three holdings are Royal Dutch Shell, Chevron and BP, and with Total at number six you are getting plenty of oil exposure. Orange, Pfizer and Nasdaq also feature in the top 10. This offers an attractive yield of 3.25% and trades at a slight discount of -1.08,

Premium fund

Finally, the Scottish play. Although actually, Scottish American Investment Company (LSE: SCAM), managed by Baillie Gifford, is another global fund and this one comes with a truly long-term pedigree, having been launched way back in 1873. Founder William Menzies thought he could offer a better income than the “pitifully low” 3.5% offered by the Bank of England at the time. Now it pays just 3%, although of course these are strange times.

The trust is up 154% over 10 years, and 64% over five. It  also has large exposure to Europe, around 36%, with a smaller US focus at 24%, and a spread of Asia-Pacific and international equities. Top holdings include Deutsche Boerse, Coca-Cola, Johnson & Johnson, Prudential, Hiscox and Microsoft. This is the largest trust of the three with £525m under management. It trades at a premium of 2.02.

Funds like these could even make you a millionaire. There is some crossover, so you may want to pick your favourite and match them with others. Then sit back and let the growth and income flow.