3 investments trusts I’d buy and hold for 10 years

Since 2023, I have been thinking about which holdings I want to add. I am a net buyer of stocks, so I generally buy stocks rather than sell them. And these three investment trusts are very well positioned for long-term growth.

A falling star of the FTSE 100

45% off, Scottish Mortgage Investment Trust (LSE: SMT) is one of the worst performers FTSE 100 last year. But there are several reasons why I am bullish on stocks over the next 10 years.

First, a decade is a long time. It takes a long time for a trend to become mainstream and for companies that are not profitable to start generating significant income. Therein lies the power of Scottish Mortgage. Long term. Managers ask investors to judge performance over a five- to 10-year period.

The trust was very successful over a long period of time. It is found like Nvidia, Teslaand Amazon early and great yield.

However, this style of investment is now out of favor. That may not change for a while. But I think the risk is now priced into the stock, as it is currently selling at a 10% discount to its estimated net asset value (NAV).

That means the stock is potentially undervalued – for the first time in years. So, I’m ready to pick up some more stocks for my retirement portfolio.

Quadratic growth

Pacific Horizon Investment Trust (LSE: PHI) invests in the Asia-Pacific region (excluding Japan). It is the fastest growing part of the world, driven by a growing middle class and major export hub.

The trust aims to invest in the 20% fastest growing companies in the region. It summarizes this approach as ‘Growth²’. In other words, the growth (of the company) is multiplied by the growth (of the region).

However, I like that this is not a pure technology fund. It also has mining and energy stocks, which makes it more balanced.

Top 10 Holdings

1. Samsung Electronics

2. Daily hunter

3. JD.com

4. Delhivery

5. Li Ning

6. Jadestone Energy

7. Samsung SDI

8. Reliance Industries

9. Mining Permit

10. Ping An Insurance

One risk is the outbreak of Covid throughout Asia. China has experienced a new wave of the virus and there is a chance it could spread again when travel reopens.

Even so, I haven’t worried about it in 10 years. Rather than Covid, I believe that the rapid development of the Asia-Pacific region will be the most important long-term factor.

A strong tail wind

The last stock I bought was BlackRock World Mining Trust. The target is to grow income and capital through investments in mining and metal stocks. Dividend income from the shares of PT.

The portfolio is exposed to several interesting long-term themes, such as decarbonisation and digitalisation. Copper, iron ore, and lithium are all at the center of these trends, and all are well represented in portfolios.

I believe this is the safest way for me to gain influence on the trend. Top Holdings included BHP, Glencoreand Rio Tinto.

One risk is that mining stocks can be very volatile. However, over the next decade, I believe the trend will rise.