Is now the time to move cash into equities?
The latest stockbroker forecast is that the FTSE 100 will touch 6,000 by Christmas 2010. The prediction is based on a robust half-year earnings season and a pick up in the pace of global merger and acquisition news, both of which are said to have have ‘quelled fears of a double-dip recession'.
Whether or not this will happen, with many savers frustrated by the poor levels of interest being paid on their cash, headlines of a potential 10% return on investments will be an attractive proposition.
Nigel Walker of TQ Invest said: "Upbeat market predictions should not influence whether your decision to invest, however for those no longer content to have money sitting in cash accounts and are prepared to take a risk with their money and invest over the long term, now could be a good time to consider equities.
"If the FTSE 100 does rise as stockbrokers forecast, then fund selections will be key to securing the best returns, and those which include large to mid cap UK company stocks may fare better."
For those looking for a more cautious approach but still seeking to benefit from any upturn in the Footsie 100 investors could consider.
Investec Special Situations - A well refined process honed over several years has ensured this has been one of the better UK funds. By aiming to invest in out of favour companies so the top 10 holdings are very different to those in the FTSE 100 index, however this is a position the manager is very relaxed about.
Newton UK Opportunities - The stock selection of the fund is primarily driven by those stocks which they have researched and which are then selected for their UK model portfolio. Generally Newton are known to favour a defensive approach, which is still their philosophy.
Invesco Perpetual High Income - This huge, well known fund continues to be invested as it usually is, in a defensive way, with Neil Woodford still having a bias to utility and healthcare companies.
For those looking to increase the level of risk of the investment then funds to consider are
Schroder UK Alpha - Richard Buxton has successfully managed this fund for a number of years. Although his fund is not as diversified as some of his peers, this has not hampered performance. He is happy to hold a portfolio of stocks which differs considerably from the composition of the FT SE 100 index.
AXA Framlington UK Select Opportunities - In terms of experience few can match Nigel Thomas. The process he favours will often lead him to have a higher than average level of exposure to medium sizes companies, which appear in the FTSE Mid 250 Index.
Artemis UK Growth - Tim Steer has proven to be an excellent choice to manage this fund, turning around a fund in a short space of time after it had rather lost its way. Consequently once again he has shown that he is an outstanding manager.
These funds were taken from TQ Invests Heroes list, to see the full list of funds selected by their Investment Committee visit tqinvest.co.uk.
The value of investments and the income from them can go down as well as up. Past performance should not be regarded as a guide to the future. The investments described may not be suitable for all recipients and this content does not constitute personalised investment advice. Torquil Clark Ltd can take no responsibility for investment decisions you may take. You should obtain full details and look at your own circumstances, objectives and attitude to risk before purchasing any investment.