Sizing Up UK Small-Cap Funds
We seem to be having more of a Santa Rout than a Santa Rally, so it’s a brave investor that’s looking to put money in small-cap funds right now. But I think it’s a great time to size up what’s on offer.
We seem to be having more of a Santa Rout than a Santa Rally, so it’s a brave investor that’s looking to put money in small-cap funds right now. But I think it’s a great time to size up what’s on offer.
I’ve always had a soft spot for investing in smaller companies, aka small caps. It’s what many private investors cut their teeth on. What’s more, there’s decent evidence that such companies outperform the wider market. This phenomenon has even got a catchy moniker: the small-cap effect.
It probably wasn’t a great surprise to see that Smithson Investment Trust is looking to raise more cash. But it was a little surprising that it was left so late and that it’s increasing by so much.
Applications are now open for Smithson Investment Trust, the keenly anticipated new offering from Terry Smith’s Fundsmith. No doubt many people will be happy to take the plunge purely on the basis of the great run the Fundsmith Equity Fund has had. But here are a few things that I think are worth knowing before you make any decision.
Comments from Terry Smith in recent weeks led some people to believe that Fundsmith was about to launch a small-cap investment fund. This morning it was confirmed: Smithson will soon be with us.
Fundsmith To Launch Smithson: A “Small-Cap” Investment Trust
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