Think Small For Big Gains

WHILE most private investors focus their firepower on the FTSE 100 Index of blue-chips, smaller and mediumsized British rivals have been delivering far superior returns lately.

- Harvey Jones

Experts say investors should consider increasing their exposure to the FTSE 250 and UK smaller companies to take advantage.

While FTSE 100 giants such as AstraZeneca, HSBC, Shell and Unilever generate 75 per cent of their earnings overseas, small and medium sized businesses have a focus on the UK. They have been given a real shot in the arm by the end to Brexit uncertainty and the country’s vaccination success, which have raised hopes of an economic rebound.

Last week the IMF revised its UK growth forecasts upwards, saying the economy is on course to grow by 5.3 per cent in 2021 and 5.1 per cent next year. That is slower than the US but faster than anticipated eurozone growth of 4.4 per cent this year.