New figures reveal the best-performing investment sectors
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New figures reveal that UK small caps have been the best performers over the past year to 31 July 2011, followed by trusts that invest in property securities, according to the Association of Investment Companies (AIC).
Annabel Brodie-Smith, Communications Director at the AIC, stated that uncertainty over the past six months from events in Japan and the Eurozone had contributed to what has been dubbed a hippo market – one that wallows about with sudden bursts of volatility.
She said: ‘It’s almost impossible to time the market, least of all pick the top performers of the future. So a balanced portfolio, taking into account geographical and sector allocation, discounts, gearing and charges, is a good place to start.
‘Cautious investors may also like to consider regular investing, which can help smooth out some of the highs and lows in the price of shares, reducing investors’ risk profile. And while it’s always interesting to look at short-term trends, above all, investors need to remember that investing is for the long term.’
Adding further fuel to the investing argument against the debt-laden developed economies, the best-performing investment sectors over the longer term have been Asia Pacific, emerging markets and commodities, according to the AIC.