Are you our next Fantasy Fund champion?

Our stock-picking game is back – and now comes with a bumper £1,000 prize for the best weekly investor, writes Sam Benstead

Normally, Telegraph Money advocates the “get rich slow” approach. But with fantasy investing, the opposite strategy is required. Without risking a penny of your own, you could be quids in by playing Season Three of Fantasy Fund Manager, our stock-picking game, which will start on Tuesday.

Everyone begins with a notional £100,000 to buy between five and 20 stocks from the FTSE 350, with unlimited trading. The best performing fund each week wins £1,000, while whoever is top after two months takes home the £5,000 grand prize.

The weekly prize has increased from £100 in the earlier seasons of the game, which means even late starters, or those languishing at the bottom, have a chance to bag significant winnings.

The Season Two champion won by backing companies expected to soar when the economy reopened, such as Cineworld. They then profited from the Reddit trading frenzy by buying silver miners as bedroom investors tried to bid up the precious metal’s price.

In the new game, players will have to take bold positions on a number of key questions. Top of the agenda is the vaccine rollout around the world.

Given that pubs and restaurants are due to open outdoor seating in about 10 days’ time, it may seem an obvious move to pack a portfolio with JD Wetherspoon or Mitchells & Butlers, which owns chains such as Browns and All Bar One.

However, shares have already rallied by 30pc and 60pc this year respectively, so much of the good news has already been factored in. Any setback to the

Prime Minister’s roadmap out of lockdown could cause shares to fall, but if demand rises more than expected they could go up even more.

One sector that could still receive a “reopening bounce” is airlines. Summer holiday plans are up in the air as Europe struggles with its vaccine rollout. Consequently, easyJet, Ryanair and International Consolidated Airlines (owner of British Airways and Iberia) shares have hardly moved in the past month, while pubs and high street retailers have shot up. If summer holidays are suddenly back on, shares prices could really take off.

Investors also need to take a view on inflation. With economies reopening and consumers ready to loosen their purse strings, combined with government stimulus around the world, some economists are betting that inflation will pick up this summer.

Companies that would do well if inflation rose include banks, which make more money when interest rates go up (as they might to control inflation), companies with strong brands that can raise prices, such as consumer goods groups Unilever and Diageo, as well as mining and oil companies, which would benefit from rising commodity prices.

If those economists are wrong and inflation never appears, investment trusts that own fast- growing technology companies, such as Scottish Mortgage or Allianz Technology Trust, could perform well. Lower interest rates are good for businesses that have promise to make substantial profits in the future.

Shares in both trusts have fallen by around 20pc since mid-February as investors have become more concerned about inflation.

Nick Hyett of stockbroker Hargreaves Lansdown said a key date to watch was May 6, when the Bank of England meets to discuss inflation and interest rates. “Should inflation gather pace, the May meeting will be a bigger event than usual,” he said.

Another date for players’ calendars is April 20, when unemployment figures are released.

The game starts for real when the London market opens at 8am on Tuesday April 6 but players can set up their portfolio in advance by visiting telegraph.co.uk/fantasy-fund. You must be a Telegraph subscriber to play and don’t worry if you’ve never invested before as you can just use our handy randomiser button to pick your stocks.