Article: Investors set to return, small cap in hand

After a long period of hype about bonds, the pendulum may be about to swing back towards equities. The recent surge in stock markets has prompted many investors to return to funds holding minnow companies in the hope of bagging decent future returns.

UK small cap funds specialise in holding companies listed outside the FTSE 350 Index, or not listed at all. The benefit of such investments is the possibility for greater returns, albeit at a greater risk, but after a sustained period of nervousness, investors are beginning to look again at this sector.

They are attracted by some decent performances over the past 10 years. Only five funds out of 76 in the Morningstar UK Smaller Companies sector ...

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