The Big Theme 

Make sure your portfolio is really diversified

Make sure your portfolio is really diversified

Stock markets surged in 2019 despite many investors feeling extremely cautious for much of the year, as evidenced by the net £2.3bn withdrawn from equity funds by UK investors in 2019, according to the Investment Association (IA). And – unusually – many safe haven assets, which should perform differently to equities, rose in tandem with stock markets. Defensive fixed-income securities such as government bonds and investment-grade credit performed strongly, in part due to investor caution, and UK investors put £11.6bn into bond funds on a net basis in 2019, according to the IA. The gold price also rose significantly, and funds such as DMS Charteris Gold and Precious Metals (GB00BYQ2JY43) and Ruffer Gold (GB00B8510Q93) made strong returns in 2019.

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