Looking to invest £1,000? Here are two investment trusts to consider

With the FTSE 100 having fallen heavily in recent weeks, buying shares may not seem to be a sound move. After all, there is a good chance of further volatility, and it would not be surprising for the index to fall further as investors price in heightened inflation expectations.

However, for long-term investors such periods of time can present buying opportunities. The track record of the stock market shows that there has been a recovery from all corrections and crashes. While this can take time, buying during an uncertain period can increase potential returns.

With that in mind, here are two investment trusts which could be worth buying right now. They could help an investor to gain access to a range of stocks, and benefit from the recent market downturn.

Improving outlook

Reporting on Friday was City of London Investment trust(LSE: CTY). It has enjoyed a relatively positive half year to 31 December, with its net asset value per share rising by 4.2% versus its level at 30 June. Its overall performance was slightly better than the UK equity income benchmark, although following the recent stock market correction, it is still down 2.1% during the last six months.

During the period, the company increased its exposure to oil and gas companies such as BP and Shell. This seems to be a sensible move, since both stocks offer relatively high dividend yields and are set to benefit from an increasing oil price. Furthermore, the company's position in housebuilders was its larger sector contributor to relative performance during the period. With generally favourable conditions set to continue, housebuilders could deliver further growth.

With a dividend yield of 4.2%, City of London Investment Trust could be a worthwhile income holding over the medium term. Although it now trades at a premium of 2.5% to its net asset value, it continues to be well-run and could post relatively strong total returns in the long run.

UK focus

Also offering upside potential is the Schroder UK Mid Cap(LSE: SCP) investment trust. It has been able to outperform the UK all companies benchmark in the last year, with its returns being 14.3% versus 8.2% for the benchmark. However, it still trades at a discount to its net asset value, with the current discount being just under 15%. This suggests that there could be upside potential from its valuation alone.

Looking ahead, the prospects for UK-focused companies could be uncertain. Brexit talks continue and the UK is little over a year from leaving the EU, transition period aside. This could mean that some of the company's major holdings may experience a period of volatility over the medium term.

While this may affect its performance somewhat, many UK-focused mid-caps may be undervalued at the present time, owing to the potential impact of Brexit. As such, now could be a good time to buy a range of them through the Schroder Mid Cap investment trust.

Making a million

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Peter Stephens owns shares in BP and Shell. The Motley Fool UK has recommended BP and Royal Dutch Shell B. 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.