The Scottish Mortgage Investment Trust (LSE: SMT) is one of the most popular investment trusts in the UK. And it’s easy to see why. Over the last five years, SMT’s share price has risen around 250%.

I hold Scottish Mortgage in my own portfolio and I see the trust as a key holding for growth. I’ve always been impressed with both the performance of the trust – which has been way better than that of the broader stock market – and the incredibly low fees. But is SMT still a top choice for my portfolio going forward? Let’s take a look. Here’s my review for 2022.

What is Scottish Mortgage Investment Trust?

Let’s start with a brief look at what Scottish Mortgage is, because it’s name can be a little confusing. SMT is a growth-focused investment trust that’s managed by Scottish investment firm Baillie Gifford. It invests on a global basis, predominantly in listed companies. However, it also has some exposure to unlisted businesses. 

It’s worth pointing out that SMT has nothing to do with mortgages. These days, the trust is very much focused on high-growth technology-related businesses.

In terms of the investment strategy, it’s portfolio managers look for well-run businesses that have strong growth potential. They invest with a long-term view, as they believe that it’s only over periods of five years or longer that competitive advantages and managerial skill within companies are truly reflected in investment returns.

I’m comfortable with the investment style here. I like the focus on growth. And I also like the fact that the trust provides exposure to some unlisted businesses. Normally, unlisted companies are only accessible to sophisticated investors through venture capital funds.

That said, the focus on high-growth stocks does mean SMT is a higher-risk investment trust. I’ll discuss this more below. 

What stocks does SMT hold?

At the time of writing, the factsheet for the month ending 31 December 2021 is not available (Baillie Gifford can be very slow to post factsheets) so I don’t have access to the latest portfolio holdings. However, the top 10 holdings in the trust at the end of November are:

Company Weighting (%) Moderna 10.5% ASML 5.5% Tesla 5.2% Illumina 4.9% Tencent 3.8% Gingko BioWorks 3.1% Nvidia 3.1% NIO 2.9% Meituan 2.6% Delivery Hero 2.5%

Source: Baillie Gifford, data as of 30 November 2021.

There are certainly some great companies on that list. I’m particularly bullish on semiconductor company Nvidia, which is generating explosive growth right now, and ASML, which makes semiconductor manufacturing equipment.

However overall, these companies are definitely higher risk. Moderna, for example, has seen its share price more than halve since mid-August. Similarly, electric vehicle manufacturer NIO has seen its share price roughly halve over the last year.

I’m comfortable with the risk level here. However, this trust is not likely to be suitable for everyone.

Performance

The fact that the latest factsheet has not yet been posted makes analysing the performance here a little difficult.

However, my calculations show that in 2021, the SMT share price rose about 10%. This return could be considered a little disappointing given that over the same period:

• The MSCI World index returned 22%

• The S&P 500 index returned 29%

• The FTSE 100 index returned 18%

However, I actually think the return of 10% here for 2021 is pretty good. I say this because a lot of high-growth stocks were absolutely crushed last year as bond yields moved higher. This is illustrated by the fact that Cathie Wood’s ARK Innovation ETF – which invests in similar kinds of stocks to SMT – fell 24% for the year. So I’m not too unhappy with the 10% return here.

Looking at the long-term performance of the trust, this has been very impressive. Over the five years to 31 December, the SMT share price climbed about 330%. Meanwhile, over the 10 years to 31 December, the share price rose about 1,150%. It goes without saying that these are excellent returns.

Overall, I’m very happy with the performance track record here.

Risks in 2022

Looking ahead, there are certainly some risks to consider.

One is that high-growth stocks could continue to underperform. So far this year, this area of the market has taken a beating as bond yields have risen. ASML, for example, has fallen from $796 to $745. This weakness in growth stocks is reflected in SMT’s share price, which has pulled back significantly since the start of the year.

I wouldn’t be surprised to see high-growth stocks underperform in the near term as interest rates rise, so I have to be prepared for some underperformance from the trust.

Stock-specific risk is another issue to consider. SMT often makes big bets on individual companies. This is illustrated by the fact that at the end of November, Moderna was 10.5% of the portfolio. If this stock falls significantly, overall performance will be impacted.

Finally, there’s the fact that portfolio manager James Anderson is retiring in April. This adds a little bit of risk. He’s been a top stock-picker over the last decade and a key driver of returns.

Fees

Turning to fees, these remain quite low. At present, the ongoing charge is 0.34% per year. However, I also have to pay trading fees to my broker Hargreaves Lansdown to buy or sell SMT shares. Overall, I’m very happy with the fees here.

It’s worth noting here that the trust currently trades at a discount to its net asset value (NAV) of 3.6%. So if I was to buy more SMT shares today, I wouldn’t be overpaying for the assets.

Is SMT a good investment for 2022?

Putting this all together, I continue to see Scottish Mortgage Investment Trust as a good investment for growth for my portfolio. Long-term performance has been excellent and I like the fact that the trust provides exposure to both listed and unlisted companies.

Having said that, I do see SMT as a higher-risk investment. In 2022, I expect some volatility. So I’m going to keep my holding as a percentage of my overall portfolio relatively small at less than 5%.

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As the country starts to recover from the pandemic, 2022 represents an exciting time for small business owners. However, small businesses could miss out on huge profits by setting up shop in the wrong location.

A recent press release from Tailhail reveals that moving to London could be the key to sky-rocketing your profits this year. Here’s why small business owners should set their sights on the UK capital in 2022.

London is the capital of entrepreneurship around the world!

London has recently overtaken a number of other global cities by producing the highest number of Forbes 30 under 30s. Therefore, the capital has managed to out-perform major global cities such as San Francisco and New York.

Research conducted by Bionic has revealed that London is now the ideal place to be a young entrepreneur. Furthermore, 870,000 millionaires currently reside in the capital, suggesting that the city is rife with money that is ready to be spent.

London is perfectly positioned to host a large number of multinational corporations. The city currency serves as a bridge between North America, Europe and Asia. Therefore, London attracts a large number of international visitors, businesses and investors.

The best time to set up shop in London

To avoid missing out on huge opportunities, small business owners should consider moving to London in the near future. This is because international travel is expected to pick up now that the UK has passed the peak of the omicron variant. As a result, London will soon become a hive for business travel. 

All of this means that small businesses in London can expect an influx of new customers in the coming year. Furthermore, many of these visitors will be wealthy business professionals who have money to spend on consumer goods.

London is an excellent place for small businesses that want to expand their reach across the globe. Consequently, moving to London could be the perfect opportunity to grow and expand your small business.

Things to consider before moving to London

While small businesses could certainly profit from moving to the UK’s capital, no city comes without its downsides.

In London, the major drawback is that it is one of the most expensive places in the UK to rent or own a property. Therefore, moving your small business to London could significantly increase your monthly expenses. For your business to survive this change, you will need to be sure that the profits made from moving will outweigh the extra costs.

Additionally, small business owners should consider whether there is a gap in the market for the goods that they offer in London. The city is already incredibly popular with entrepreneurs – there are over a million private enterprises currently located in London. It may be wise to conduct market research before relocating to ensure that your business will attract a good customer base.

Nevertheless, entrepreneurs located in London are thriving, and there are plenty of opportunities for new hopefuls to make the most of the opportunities that London has to offer!

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Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.

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It’s the news savers have been waiting for: savings rates are on the up!

This week has seen the launch of a new table-topping easy access account paying 0.72% AER variable. But if you want it, you’ll have to act fast as it won’t be available for long. Here’s everything you need to know.

How can you earn 0.72% on easy access savings?

If you’re looking for the highest easy access savings rate, then take note of Family Building Society’s new Premier Saver account. It currently pays 0.72% AER variable, which is the highest easy access rate we’ve seen for a while.

You can save from £1,000 to £250,000, and you must open the account online. As it’s easy access, you can make as many withdrawals as you like, though you must take out a least £100 each time. 

Interest is calculated daily and paid every year on 31 January. While the account currently pays the highest easy access rate, the interest rate is variable, so it could change at any time. If the rate does go down, you’ll be notified in advance, giving you enough time to move your cash to another savings account if you wish.

Why must savers act quickly to access the 0.72% rate?

It’s worth knowing that there is an odd quirk with this account, meaning you must act quickly if you want to secure the 0.72% AER variable interest rate. That’s because the account stipulates that you can only add funds to it until 3pm on Monday 7 February. After this ‘funding cut off date’ you’ll still be able to withdraw cash, but you won’t be able to add further funds to the account.

As a result, if you’ve a hefty lump sum to save, you’ll have to stash all of it into the account ahead of the deadline.

What easy access alternatives are available?

Because the Family Building Society account has a funding cut-off date, it won’t be to everyone’s taste. 

Therefore, if you’d prefer a more straightforward account, then you may wish to look at Shawbrook Bank’s easy access account that pays a slightly lower 0.67% AER variable. This account allows you to deposit between £1,000 and £85,000, and you can make as many withdrawals and deposits as you like.  

Alternatively, if you have less than £1,000 to save, then the Marcus online savings account is an easy access account that pays 0.6% AER variable. This rate includes a 0.1% AER fixed bonus for 12 months. With Marcus you can save from as little as £1 (up to £250,000), and add or withdraw funds at will.

All of these easy access accounts have full FSCS savings safety protection, up to the £85,000 limit. This means that if any of these providers go bust, your money is safe up to the limit. (Do note that Marcus shares its FSCS protection with Saga, so don’t save more than £85,000 across these two providers).

For a full list of easy access options, see our top-rated easy access savings accounts.

Will other savings rates increase?

It’s certainly plausible that Family Building Society’s latest offering may encourage other providers to up their rates. A more competitive savings market is great news for savers as it means higher interest rates.

As the Bank of England base rate is tipped to rise again in 2022, this is also likely have an impact on the savings market. That’s because a higher base rate makes borrowing more expensive for lenders, which makes savers’ cash more attractive. In other words, a higher base rate should lead to higher savings rates across the board. However, it remains to be seen whether this will prove to be the case.

How can I boost the interest rate on my cash?

While 0.72% AER variable is the highest easy access savings rate we’ve seen for a while, if you’re keen to earn an even bigger rate then you may wish to explore the option of locking away your cash.

That’s because right now, you can earn 1.36% AER fixed for one year with Zopa. If you’re happy to lock away cash for longer, then you can earn 1.62% AER fixed for two years through Charter Savings Bank. 

If you don’t need access to your cash for a very long time, then Charter Savings Bank offers an account paying 2.1% AER fixed for five years.

For more fixed options, see the list of our top-rated fixed-rate bonds.

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Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.

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The government has already announced its plan to ban the sale of petrol and diesel vehicles by 2030, but are we really ready? Well, some Brits have already made the jump from fossil fuels to electricity, but others are reluctant, claiming there are still some concerns. Let’s take a look at some of the key financial reasons why Brits are unwilling to switch to electric vehicles (EVs).

1. The cost of an electric vehicle

Electric cars in the UK cost between £17,000 and upwards of £140,000, with the average cost being £44,000. The cheapest EVs range from £15,000 to £27,000.

Of course, when buying an EV, you’ll have to consider various factors, such as the maximum distance you cover in a day and your driving frequency. In most cases, you’ll find that the higher the battery range, the more expensive the EV will be. Also, you might like some additional features that may push the price higher than £27,000.

Some Brits have found that it may cost them more than £29,000 to purchase a basic EV that meets their needs. Many believe that this is way too expensive compared to the price of a petrol or diesel car. In fact, with the EV price tag, a driver could buy a petrol or diesel car and be left with a balance large enough to run and maintain the car for years. This is a key reason some Brits are reluctant to make the jump.

2. Electric car resale value

The battery is undoubtedly the most valuable component in an electric car. However, it loses its ability to hold a full charge over time, and there’s concern that some second-hand EVs may require the buyer to buy a new battery, which would set them back a few thousand pounds.

What does this mean for the resale value? Drivers of cars with batteries nearing the end of their useful life could be forced to sell their EVs for a meagre price.

3. Charging prices might increase

Drivers of diesel and petrol cars pay billions in taxes for roads that EV drivers aren’t paying towards. What happens as more and more drivers make the jump to EVs? Charging prices could shoot up to cover the taxes the government is no longer receiving.

4. Shortage of electricity

Though the National Grid and Ofgem maintain that the UK has sufficient capacity to satisfy the demand for the foreseeable future, some Brits still question what would happen if there was a shortage in electricity. This may lead to an increase in your electricity bill, meaning charging points will also charge extra. Running an EV might prove expensive, regardless of its low maintenance features, insurance aside.

5. Home charging versus public charging ports

Not everyone has a driveway or garage, meaning they have to rely on public charging ports. Public charging ports can be expensive compared to home charging. Homeowners with charging points installed have the advantage of charging at night when tariffs are cheaper. This means that some Brits relying on public charging could be paying more than those who charge at home, depending on the distance driven and frequency of car use.

To make things more challenging, charging points along streets aren’t sufficient. There can be stiff competition among neighbours, especially considering charging can take hours.

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Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.

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Without a doubt, the UK housing market had one of its hottest years in 2021. Stimulated by the Stamp Duty holiday, the market turned into somewhat of a frenzy. This year is likely to be a more normal one for the housing market, but strong buyer demand is set to carry over into 2022. 

With the adoption of the hybrid model of work, some have set their gaze upon more rural areas in an attempt to escape the big city. With its picturesque beaches, the British seaside has captured the attention of homebuyers in 2021. Due to the increased demand, some of these coastal towns and villages have seen a big jump in annual asking prices, resulting in huge price growth.

According to Rightmove, these are the five areas that have seen the biggest house price increases over the past year. 

1. Padstow, Cornwall

Alongside homebuyers looking for a change of scenery, Padstow is also popular among holidaymakers. With a few easily navigated harbours, the town remains a yachting haven and a fishing port. Due to high demand among buyers in 2021, the average asking price rose by a staggering 20% in 2021.

This means that the average asking price is now £658,588, up from £548,382. Despite this, with the picturesque scenery and the opportunity to be close to nature right at your doorstep, it is easy to see why Padstow topped this year’s list.  

2. Whitby, North Yorkshire

The next entry takes us from the West Country all the way to North Yorkshire. The impressive remains of Whitby Abbey and the town’s cobbled streets, alongside its lively vibe and rich history, make Whitby a popular tourist destination. Moreover, you can enjoy the two sandy beaches on either side of the River Esk.

If that is not enough, there is a great mix of architecture from different periods – Georgian townhouses, Victorian terraces, stone cottages and contemporary modern homes.

With that in mind, it is no surprise that Whitby has seen an asking price increase of 17%. So you can expect sellers to be asking for an average price of around £254,218 in 2022. 

3. St. Ives, Cornwall 

Venturing back South, we head towards Cornwall again and the sandy beaches of St. Ives. Previously, the town was dependent on its fishing industry, but now the focus is primarily turned towards tourism. The sandy beaches and the favourable conditions make for a desirable location for surfing enthusiasts.

As well as enjoying the town’s beaches, visitors and locals can spend time enjoying themselves in the stylish town centre. This is why the average asking price in the area is now £473,161, an increase of 15% in 2021.

However, if you prefer a house with a sea view, you can expect an average asking price of well over £1 million! 

4. Porthcawl, South Glamorgan

Twenty-five miles away from Cardiff and overlooking the Bristol Channel, Porthcawl is a charming town on the south coast of Wales. If you are looking for that beach life, this small town ticks all the boxes with its seven sandy beaches. And for those that enjoy being close to nature, the Wales Coastal Path offers an opportunity for picturesque walks.

Alongside the amazing scenery, Porthclawl has a great range of cafes, pubs and restaurants, where both visitors and homebuyers could spend time with friends and family. Over the past 12 months, the average asking price in the area has increased by 14% to £307,051. 

5. Mablethorpe, Lincolnshire

East of the Lincolnshire Wolds is the seaside town of Mablethorpe. If you haven’t heard about it, it is because Mablethorpe is a bit of a hidden gem. Set between Cleethorpes and Skegness, the small town offers visitors a huge sandy beach with all the traditional attractions for children and families. There are plenty of cafes and restaurants, as well as a cinema, an aqua park, a crazy golf course and a seal sanctuary.

For those looking to climb the property ladder, there is a wide range of bungalows, contemporary houses and period terraced properties. Despite the asking price increase of 13%, you can expect to pay an average of £173,612 to buy a property here.  

The rest of the top ten areas that have seen the biggest price increase

We’ve looked at the five areas with the biggest asking price increases, according to Rightmove. Here are the other five options that complete the top 10:

Name	Annual asking price increase	Average asking price
Newquay, Cornwall	13%	£317,846
Filey, North Yorkshire	13%	£214,617
Pwllheli, Gwynedd	13%	£222,607
Brixham, Devon	12%	£299,127
Preston, Paignton, Devon	12%	£303,684

If you’re planning to move in the near future, check out the range of mortgage-related resources we’ve put together to make the process easier.

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Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.

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As we approach the end of January we can expect some of the highest monthly or quarterly energy bills to arrive, reflecting consumption during the colder winter months. This week is Big Energy Saving Week, run by Citizen’s Advice and the Energy Saving Trust to share advice that helps people manage their energy bills.

Rising prices

The current energy crisis is causing worry for many of us. According to new research published by the Resolution Foundation today, 6.2 million households will struggle to pay bills when the new energy price cap comes into effect on 1 April. The price cap is predicted to rise by a staggering 51% in April 2022, an average increase of about £600 a year.

Check your bill

It is possible that your bill might be wrong so check it! Look at your bill and how it is broken down.

Take the price of electricity or gas per unit (KW/h) divided by 100 and multiply that by the consumption of the energy used. Add the cost of the standing charge, as the number of days multiplied by the daily charge and then add the VAT, which for energy is 5%.

So for example:

1)	Pence per KW/h/100 x consumption 18.5/100) x 315.5	+	£58.37
2)	Days x daily standing charge 63 x 0.223	+	£14.05
3)	Sub total	=	£72.42
4)	VAT @ 5%	+	£3.62
5)	Grand Total	=	£76.04

If you have a day and night rate, perform the same check for the night rate. 

If you have both electricity and gas then repeat the check for your gas bill too.

Check the reading

If your supplier has used estimated readings for a long time, it could be that your bill is significantly wrong. Take readings and submit them to your supplier.

Don’t pay the estimated bill. Instead, send correct readings to your supplier who will provide an accurate bill. It could work in your favour, as you may have paid too much and be in credit. But do remember it could also go the other way!

Check the Direct Debit

Your Direct Debit amount should be the same each month/quarter and your supplier must inform you if it will change. If it doesn’t inform you, you can complain to your bank under the Direct Debit guarantee.

Get back any credit

If you pay by Direct Debit, you may be in credit. You can claim this back, or you may want to use it to reduce Direct Debit payments or leave it there to cover the coming price hikes.

Check your meter

Although it’s quite unusual for a meter to be wrong, it’s still worth checking, you never know!

You might be asked to take daily readings for a week.

If it is showing an error message or you don’t believe you are using the amount of energy you are being billed for, contact your supplier and take a reading and picture of the meter.

If an error message is showing on a prepayment meter, there’s probably a fault. Contact your supplier speedily, who must come and check the meter within 3 hours on a working day and 4 hours on a non-working day. If you need to top up your meter while the matter is being resolved, request replacement tokens from your supplier.

For a credit meter, turn off everything that uses energy including anything on stand-by and see if the display numbers still increase. One by one, turn on an appliance. If numbers turn very quickly when you turn one on, that is probably the faulty appliance. If it’s a gas meter, there could be a leak and you should immediately contact the National Grid Gas Emergency line on 0800 111 999.

Your supplier must tell you what they’ve done to investigate the problem, how they will fix it and offer to put all the details in writing. Be aware, though, that if your supplier finds that it’s not faulty, they might ask you to pay a fee.

Complaining about a wrong energy bill

In the first instance, complain to your supplier and explain the issue politely and objectively.

If you are not satisfied with your response, you can take the matter to the Energy Ombudsman. You must wait 8 weeks from when you started the complaint or request a deadlock letter. This deadlock letter will come from the supplier stating that they will not discuss the matter further. The Energy Ombudsman will then make a decision.

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Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.

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