TRY­ING TO BEAT THE MAR­KET

Franklin UK Mid Cap (B7BXT54)

Shares - - TALKING POINT -

While us­ing a tracker fund to achieve broad mar­ket ex­po­sure can of­fer a use­ful foun­da­tion stone for your in­vest­ment port­fo­lio, you may also want to see if you can find a fund man­ager who can con­sis­tently beat the mar­ket.

Man­aged by the ex­pe­ri­enced Paul Spencer along­side Mark Hall and Richard Bul­las, Franklin UK Mid Cap has achieved a de­cent long-term per­for­mance by in­vest­ing in high qual­ity, sus­tain­able busi­nesses. This is un­der­pinned by the strong his­tor­i­cal per­for­mance of mid cap stocks in gen­eral.

Un­like large caps, mid-caps typ­i­cally have more sig­nif­i­cant growth po­ten­tial and could in­crease their profit at a rapid rate if things are go­ing well.

Com­pa­nies on the FTSE 250 are not as widely fol­lowed as those on the FTSE 100 so there can be more op­por­tu­ni­ties to spot com­pa­nies whose earn­ings po­ten­tial has been un­der­es­ti­mated.

Top hold­ings in the Franklin fund in­clude prop­erty in­vestor Der­went London (DLN) and film, TV and mu­sic rights busi­ness En­ter­tain­ment One (ETO).

Al­ter­na­tive sug­ges­tion: TB Sara­cen Global In­come & Growth (B3XPLG5). This fund of­fers gen­uine global ex­po­sure to firms with sus­tain­able growth po­ten­tial and avoids risky busi­ness mod­els in an at­tempt to limit losses.

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