Best performing sectors for UK funds in 2017
By Kristen McGachey, 10 Apr 17
The results are in – here are the 10 strongest-performing sectors on a total return basis according to the UK’s Investment Association and data from FE Analytics.
The IA’s Technology & Telecommunications sector was also one of the major winners of the first quarter, returning 10.68%.
“This sector is a mixed bag of companies,” said Architas’ Lowcock, “some are transforming industry, others are established mature businesses.”
But, unlike other sectors currently, “there is a constant source of growth” that has investors hyped.
He said: “The market is currently placing a premium on that growth from SNAP’s IPO to Tesla overtaking Ford’s market even though it doesn’t make anywhere near as many cars.
“The Mega-companies of tomorrow command a huge premium today and investors are attracted by potential technology businesses offer. There is a lot of momentum driving the sector and investors need to be careful as at some point the price you pay for a good company will be the only thing that matters.”