A leading asset manager has said those with tracker investments could overexpose their funds to risks associated with investment in oil, pharmaceuticals, banks and commodities.
New Star Asset Management says investments in the FTSE 100's top ten could hold "mixed fortunes".
It adds that tracker investments are "fundamentally flawed".
Nearly half of the index's weightings comprise the top ten holdings in the FTSE 100, which mainly includes stocks in banks, oil and pharmaceuticals, the asset manager points out.
Almost a fifth of the FTSE is weighted between oil giants Shell and BP, while banks HSBC and Royal Bank of Scotland make up a tenth of the FTSE weighting.
Pharmaceutical companies GlaxoSmithKline and AstraZeneca make up nine per cent of weighting and mining stocks account for four per cent.
Vodafone and Unilever stocks make up five per cent and 1.2 per cent respectively.
Performance in these investment stocks has been described as "extremely volatile" over the last half-decade.
This is why New Star is urging private investors to note the associated investment risks that come with the FTSE 100 top ten companies.
It explains that when it comes to private investors, these risks are "very significant" and "not often recognised".
FTSE 100 investment warning
Investments Quote Line
0845 108 0505
Financial Services > Investments > Investments News
FTSE 100 investment warning
Tue, 21 Feb 2006
Recommended links
Stock market savings bond launchedProperty and stock market savings plan launched
Stock Market Information
Online Share Dealing
Need help with your investment - fill in our quick enquiry form
New investments product launched by financial services provider
Bristol team praised after investments competition success
Investments analyst praises diversified portfolios
Commodities price rise linked to green revolution by investments company
Ethical UK investments reach record high
Investments in Latin American countries jeopardised
French investments tipped to emerge unscathed
Fund manager explains approach for finding appreciating investments
Investments in foreign property increasingly popular
Investments organisation unveils climate change fund
Deadline looming for tax-free savings investments
Investments Isas would have yielded 40 Per Cent more than cash, savings study indicates
Alliance and Leicester offers new savings and investments deal
Investments service partnership announced by Skipton Financial Services
Couples candid with investments, survey finds
Bond investments should not be affected by inflationary pressures, analyst claims
New investments fund targets international commercial properties
Japanese economic changes to affect investments
More must keep track of investments, experts warn
Consumers with investments predict 6 Per Cent base rate
Knowledge gap hinders ethical investments
New investments fund launched
Biofuel prospects analysed by investments specialist
Financial services provider introduces investments to bonds
Investments analyst bullish about UK shares
Ethical investments predicted to top 100 Per Cent growth
Investments company claims to be well-positioned for consequences of rate hike
New investments bond with guaranteed returns launched
New investments tool separates speculators into 8 categories
Risk of Aim investments is exaggerated, analyst claims
FTSE 100 analysis challenges old investments adage
Investments organisation reveals Asian returns over last decade
Chinese investments predicted to perform well in 2007
Abbey provides new option for investments
Half of UK interested in ethical investments, research indicates
Prospects good for Chinese investments, analyst claims
M&G Investments named Fund Manager of the Year
Fund manager predicts more difficult year for investments
Investments analyst anticipates Chinese growth
Evolution continues in alternative investments
Spring clean your investments portfolio, says financial adviser
Bad investments induce big losses for SkyePharma
Economic strength is good for investments, analyst indicates
Premium bonds part of balanced investments portfolio, financing expert claims
FTSE 100 investments hit six-year high
Investments in bonds and equities 'are strong despite rate rise'
New multi-asset investments fund explained
New investments product reflects both FTSE 100 and house prices
Britons increasingly seek investments abroad
F&C Investments predicts equity market recovery
More money saving options for cash CTF investments
More emerging market companies offering dividends on investments, analyst claims
New investments package launched by banking company
Better protection for investments, UK regulator claims
Investments suffering because of failure to track inflation, expert claims
F&C unveils new investments fund
Investments specialist explains Chinese growth during 2006
Temporary investments discounts announced by financial services provider
Friends Provident: People want ethical investments
Most grandparents would consider investments for grandkids, study shows
Investments analyst questions quiet summer season theory
Investments company calls for suffrage rethink
National Savings and Investments on TV
Investments in Japan set for improved 2007, fund manager forecasts
Bonuses being put into investments, financing research reveals
Savers flock to make investments in ISAs, suggests research
National Savings and Investments unveils TV promotional campaign
Private investments used for household financing, analyst suggests
Abbey targets short-term savings with new investments option
Survey indicates gender differences in savings and investments habits
Changes in rates for National Savings & Investments
Investments have benefited from interest in green firms, analyst suggests
New property unit trust introduced to investments sector
Investments perks delineated in new guide
| investments news |
|---|
| Pensions are not the only investment option - Wed, 01 Sep 2010 |
| SIPP holders want to make their own investment decisions - Fri, 27 Aug 2010 |
| Investment company urges Britons to be sensible selecting a credit card - Wed, 25 Aug 2010 |
| More News |
Investments Newsletter
Monthly investments news, top tips & more.
Investment Advice
Get free investments advice from authorised investments experts.
