Here’s why I’m still buying Scottish Mortgage Investment Trust

first_img Image source: Tesla Our 6 ‘Best Buys Now’ Shares I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Here’s why I’m still buying Scottish Mortgage Investment Trust I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Paul Summers | Sunday, 30th May, 2021 | More on: SMT SSON This is not to say that there’s aren’t a few things to bear in mind. While the ongoing charge of 0.9% certainly isn’t the highest in the market, it’s still high. Regardless of how manager Simon Barnard performs from here, that fee will always be due. One also needs to bear in mind that relatively youthful Barnard doesn’t have a long track record. This, however, is a risk I’m comfortable with. With its premium to net asset value dropping in recent weeks, I’m taking advantage while I can.  Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! The rotation from growth to value stocks by investors over the last few months has hit the Scottish Mortgage Investment Trust‘s (LSE: SMT) share price. On Friday, it closed at 1,195p. That’s 15% off the all-time high it hit earlier in 2021.Aside from the valuations of holdings such as Tesla taking a (long overdue) tumble, SMT has faced another recent setback in the announcement that co-manager James Anderson will be retiring.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…As a long-term investor, however, I’ve been buying more of the investment trust in May. Here’s why.Disruption…on the cheapWhile the departure of Anderson is a shame, it’s not a complete surprise. A 21 year-stint (22 by the time he actually leaves) is a long time to manage the same fund. The need for fresh blood and new investment ideas is both inevitable and healthy. Notwithstanding this, I’m reassured that Scottish Mortgage Investment Trust’s other manager, Tom Slater, is staying put. This should make the eventual succession process a lot smoother.  SMT’s low ongoing charge (0.36%) also remains a big pull for me. This is a very cheap way of getting access to some of the most disruptive growth stocks in the world. It’s even on par with many passively-managed exchange-traded funds. Personally, I’m a big fan of having both active and passive elements to my portfolio so long as the fees charged by the latter can be justified. I don’t think this has ever been a problem when it comes to the Scottish Mortgage Investment Trust. It’s climbed 359% in value over the last five years.center_img Paul Summers owns shares in Scottish Mortgage Investment Trust and Smithson Investment Trust. The Motley Fool UK has no position in any of the shares mentioned. 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. Sure, there’s no guarantee that the share price won’t continue to wobble. Concerns over inflation mean that risky, ‘blue sky’ stocks might remain out of favour. Many investors will also be looking to capitalise on reopening opportunities as vaccination programmes make an impact. Previously out-of-favour sectors such airlines, pub chains and high street retailers are back on buy lists.On this front, I’m taking a balanced approach. Some of my money is invested in stocks that I think could benefit from a return to normality. But sell my holding in a trust that could still provide great returns for many years to come? Absolutely not!Also on my shopping listSMT isn’t the only investment trust I’ve been buying in May. I’ve also been adding to my already-sizeable stake in Smithson Investment Trust (LSE: SSON).Like Scottish Mortgage, Smithson’s share price has been a bit volatile in recent months. Since its aim is only to invest in high-quality small and mid-cap firms, that’s not really surprising. Most of these rarely trade on cheap valuations. One can’t ignore the possibility that some early investors may be keen to bank profits. Since launch in October 2018 to the end of April 2021, Smithson achieved a quite brilliant annualised return of 25.4%.  Enter Your Email Address “This Stock Could Be Like Buying Amazon in 1997” Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Simply click below to discover how you can take advantage of this. See all posts by Paul Summerslast_img read more