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Don't believe in January, Neil Woodford's new fund, ready for a strong run and the UK's best equity income

A round-up of this week's fund stories
February 9, 2017

"As goes January, so goes the rest of the year," according to the popular saying. But don't hold out for a quiet 2017 just yet, warns deputy personal finance editor Kate Beioley, because the so called January effect has not been apparent in recent years, and she explains in her latest monthly comment on the markets and your money why this is the case. She also looks at how markets and funds have been performing, and more importantly, how you should position going forward to take on the challenges of the coming months and years.

OTHER STORIES IN THIS ISSUE

Star manager Neil Woodford is launching a third fund and it will target a higher income than his CF Woodford Equity Income Fund (GB00BLRZQB71). Kate Beioley looks at what the new fund will aim to deliver, where it will invest and how it compares to Mr Woodford's other two funds - ahead of its launch next month.

This week's tip highlights a fund which invests in out of favour companies and had not done well itself for a number of years. However, over the past year its fortunes have changed and its portfolio positioning suggests it has a further strong run ahead.

Venture capital trusts (VCTs) are increasingly popular with high earners who have used up their shrinking pensions allowances, but recent rule changes may diminish their ability to provide an attractive supplement to retirement incomes. However, advisers and analysts argue that VCTs still have a valid part to play in boosting retirement incomes, and the effects of the rule changes will not be immediate. They also explain why you will need to be quick if you want to invest in one of these funds.

In our latest personal finance podcast Laura Foll, co-manager of Lowland Investment Company (LWI), explains where to find the best equity income opportunities in the UK. The team also look at what star manager Neil Woodford's new fund will offer and another potential change at Alliance Trust (ATST).

Our podcast is now available across five different distribution channels to allow you to access it in the most convenient way. Find us on Soundcloud, Acast, Audioboom, Stitcher and iTunes.

This week's Portfolio Clinic features an investor who wants to grow his capital to boost his pension and save for his children, but can't resist making constant trades. Our experts explain why he is doing himself out of long-term growth and suggest some ways to improve his asset allocation.

Do you have a personal finance problem? Or want to know more about something in this week's personal finance pages? If so let us know by getting in touch with leonora.walters@ft.com, kate.beioley@ft.com or emma.agyemang@ft.com.