TRYING TO BEAT THE MARKET
Franklin UK Mid Cap (B7BXT54)
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.