How tech and gold funds shone brightly during crisis

GOLD funds have been a beacon of hope for investors amid the coronavirus market turmoil this year.

Investment funds which provide access to the yellow metal and related mining companies are some of the best performers since the beginning of this year, according to data gathered by Chelsea Financial Services.

The Ruffer Gold Fund has returned savers 53.5pc of their money since January 1, pulling in third in the rankings of topperforming funds.

And since the wider stock market began to recover from its pandemic low in late March, MFM Junior Gold and ES Gold and Precious Metals have made investors more money than any other fund. US-focused funds, which have long benefited from the rise of tech titans like Google and Amazon, also continued to rake in the money throughout the pandemic.

Even though stock markets have been jittery, tech firms have been largely unaffected by the coronavirus worries.

Some, such as video conferencing firm Zoom, have even reaped the benefit of more people working from home.

Savers with money in the Baillie Gifford American fund have seen the value of their nest eggs increase by 52.3pc since the new year. Although investors focused on UK stocks have not seen such dramatic rises, performance has not been too shabby.

All three UK fund sectors – all companies, equity income and smaller companies – are in the top half of the table when looking at returns made since the March market low.

Darius McDermott, the managing director of Chelsea Financial Services, said: ‘At times when the market rallies, equities will make some decent returns, but these good days will no doubt be sandwiched between days when markets fall too, so more defensive assets, such as gold and government bonds, will be important to cushion those falls.

‘As ever, having a diversified portfolio is important.’