DIY investors can buy investment trusts at much lower prices than usual as market falls widen discounts.

British investment companies have fallen by 18pc this year, far exceeding the 8pc drop in the FTSE All Share index, which tracks the performance of all stocks listed in London.

This is because trusts’ own share prices can fall by more than those of the assets they own. This widens their share price “discount”.

Such falls have opened up a number of buying opportunities for DIY investors. Across trusts that sell for less than the value of their assets, the average discount stood at 6pc at the end of February, double the average of 3pc over the past 12 months, according to research from Winterflood, a broker.

The firm’s Simon Elliott said there were discounts available across most investment trust sectors. “Royalties saw the largest de-rating [falls], followed by infrastructure and property,” he said.

In these three areas, the cheapest of Winterflood’s recommendations was the Standard Life Investments Property Income trust, which traded at a 24pc discount to the value of its net assets. It has returned 8pc in the past three years.

Mr Elliott highlighted the £1.4bn BlackRock World Mining trust as a key outperformer this year. It has delivered returns of 16pc thanks to soaring commodity prices.

For investors who seek exposure to the London stock market, the analysts recommended the Mercantile investment trust, which traded at an 11pc discount and has returned 16pc in three years.

The NB Private Equity trust, which specialises in global privately owned businesses, was the cheapest international trust; it traded at a 33pc discount.