Security vs. growth: Three large and small-cap funds for your ISA
How much you invest in small and large-cap equities is one of key questions investors should be...
26 July 2018 marks six years since Mario Draghi, president of the European Central Bank (ECB), made a promise to “do whatever it takes”. In the midst of the European sovereign debt crisis, he made a pact to preserve the euro and thereby keep the eurozone intact.
Investors who trusted him to be true to his word have been rewarded: the MSCI Europe ex UK is up 111.19%* since the speech, compared with returns of just 79.64%* from the FTSE All Share.
Draghi is now ‘undoing’ it and has started to taper his bond-buying programme: the current €30bn of assets bought each month will halve to €15bn in September and end completely by December.
So what does the future hold? Darius McDermott, managing director of FundCalibre looks at the pros and cons:
The best performing Elite Rated European equity fund over the six-year period is T. Rowe Price European Smaller Companies Equity, which returned 205.58%*. The fund is actually pan-European and invests around 30% in the UK. It is currently overweight in the technology, consumer discretionary and healthcare sectors.
*Source: FE Analytics, total returns in sterling, 26 July 2012 to 18 July 2018