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Go for small wins with Liontrust UK Micro Cap

Liontrust UK Micro Cap is able to invest in smaller companies with greater growth potential
Go for small wins with Liontrust UK Micro Cap

UK equities have rebounded strongly following this year’s sell-off, and some of the biggest gains have been made by smaller companies. The FTSE Aim 100 and FTSE Aim All-Share indices, for example, rose more than 45 per cent between 20 March and 8 June, compared with the FTSE 100's 25 per cent increase. And some individual smaller company stocks have made particularly huge gains in recent months.

IC TIP: Buy at 181.44p
Tip style
Growth
Risk rating
High
Timescale
Long Term
Bull points

Quality bias

Proven investment process

Experienced managers

Strong track record

Bear points

Relatively high ongoing charge

These stellar returns and the appeal of backing high-growth companies might tempt you to dive into this part of the market. But the risk and volatility inherent in smaller company stocks, as well as the sheer amount of due diligence required to invest in them successfully, means that there is a strong case for getting exposure to this part of the market via a smaller companies fund.

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