'Volatility affects funds'

07 January 2008 / by None
Financial market volatility has had a negative impact on certain types of funds, according to a new report.

Investment firm Rensburg claimed that although small and mid-cap stocks were "making all the running" at the start of 2007, investors in large cap assets are reaping the benefits now.

Colin Morton, investment director at Rensburg Fund Management, said that it is "scarcely surprising" that funds with "above average small and mid cap exposure" were "hurt" by recent market volatility.

The company's own UK Equity Income portfolio is "proving its worth" against others in the sector during this period of turbulence, he added.

In November, Barclays Stockbrokers reported that 79 per cent of investors actively look to diversify their portfolios.

The firm found that 20 per cent choose to do so by investing in different asset classes, 19 per cent investment in different markets and 40 per cent invest across a variety of sectors.

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