Scottish Mortgage Investment Trust (LSE: SMT) is a publicly traded investment trust. It is headquartered in Edinburgh, Scotland, but invests in diverse markets across the globe.
The focus of the trust is on long-term investment in a diverse portfolio of companies that offer stronger-than-average returns. Scottish Mortgage Investment Trust is a constituent of the FTSE 100.
Read on for more information on how you can buy shares in Scottish Mortgage Investment Trust.
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Step 1: Get a share broker
Shares of Scottish Mortgage Investment Trust are listed on the London Stock Exchange. The procedure for buying their shares is the same as for any other company.
When comparing options, check what commission and foreign exchange fee the broker charges as well as features like market access, tradable instruments, and whether the broker has fractional share investment, etc.
Some brokers have demo accounts you can use with no obligation. These are a good way to test out a platform before taking the next step and transferring money to invest with.
Step 2: Fund your account
You must have cleared funds in your account before you can invest.
You can add funds to your account using a bank transfer or debit card. Some brokers accept deposits via credit cards, although this is less common than those that accept debit cards. Check that there isn’t a processing fee if you want to deposit funds from your credit card.
If you want to make a time-sensitive investment, don’t forget that it may take a while for funds to be deposited into your account.
Step 3: Decide on your investment budget
It can be risky to invest in something you don't know much about. Avoid investing more than you can afford, especially if it is likely you will experience financial difficulty should your investment go south.
It is possible to reduce price volatility through periodic investments, which have the added benefit of pound cost averaging over time.
Step 4: Set up your order
If you know the price you want to buy or sell your shares at, you can configure an order so that it executes at a specific price. You can also set up a recurring order to buy more shares automatically, for example, monthly.
Otherwise, a market order is the easiest way to buy shares online, requiring very little configuration.
Step 5: Buy shares
With your account funded and order configured, place your order to buy shares.
Keep abreast of what is happening in the market. Apart from tracking the share price, read announcements that Scottish Mortgage Investment Trust make and study their company results.
Keep an eye out for press stories about Scottish Mortgage Investment Trust, their competitors, and the investment trust industry. Press articles can have a significant impact on the price of your shares. Bear in mind that despite the name, Scottish Mortgage Investment Trust is not a mortgage lender.
On the whole, Scottish Mortgage Investment Trust is a highly diversified investment across industries, geographies, and instruments.
For the sake of comparison, monitor what other investment firms are doing. Examples include Berkshire Hathaway (NYSE: BRK.B), Alliance Trust (LON: ATSE), Caledonia Investments (LON: CLDN), and Personal Assets Trust (LON: PNL).
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