Shoppers are on the hunt for good deals and offers on Black Friday but investors can also grab a bargain in the UK stock market.

However, just like on the high street, there will be deals that are genuine bargains worth jumping and discounts to try and make it like a good offer but that you should walk away from.

Dzmitry Lipski, head of funds research at interactive investor, checked out the deals and found three funds you might want on your shopping list.

Scottish Mortgage Trust (SMT.L) | Discount: 14%

Baillie Gifford’s Scottish Mortgage trust aims for capital appreciation by investing for the long-term in best-in-class growth companies across the globe, allowing an allocation of up to 30% in unlisted assets.

Over the past decade, the trust has traded typically near to net asset value (NAV) or at a small premium, until a deterioration in performance in late 2021 saw the discount widen through 2022 to a depth of about 22% in the first half of 2023. Despite a small recovery over the past two months, the current discount of near 14% still represents a divergence from the trust’s five-year premium/discount trend.

Net asset value, or NAV, of an investment company is the company's total assets minus its total liabilities. For example, if an investment company has securities and other assets worth ￡50m and has liabilities of ￡10m, the company's NAV will be ￡40m.

When the market price of a fund is trading below its net asset value, is is trading at a discount.When the opposite happens, it is trading at a premium.

Read more: Black Friday: Where can investors find great deals?

The trust clearly struggled through 2022, Lipski says. However, he says ii’s confidence in SMT’s investment strategy remains intact.

“This unique and high active share approach has proven its ability to create substantial alpha and pick companies at the helm of transformative themes. The global trust offers a unique and long-term approach to investing in future winners, as well as exposure to operationally strong and growing businesses that aren’t accessible via any exchange listing,” Lipski said.

European Smaller Companies Trust (ESCT.L) | Discount: 14%

Managed by Janus Henderson’s Ollie Beckett, the European Smaller Companies Trust invests in small-cap companies across Europe. The bottom-up process seeks companies overlooked by the market with barriers to entry, differentiated business models and strong management.

The portfolio is varied in allocating a small amount to early-cycle growth companies, with the balance across quality growth, mature and turnaround companies. The overall portfolio has no preeminent value or growth tilt, but a clear bias toward the bottom of the market-cap spectrum, even versus other small-cap peers.