Boring companies a safe bet for investment, expert claims

Tue, 06 May 2008

"Large cap laggards" are set to be the European investment of choice as the credit crunch bites, one expert has claimed.

According to Rajesh Shant, manager of the Newton European High Income Fund, while small cap firms have performed best in the past, large cap investments are now coming into their own.

He said: "Looking ahead, companies with strong balance sheets, cash flows and earnings will be well positioned to exploit weaknesses of their smaller counterparts and pick up market share."

These so-called "boring" companies might well offer the best choice for those looking to expand their portfolio of investments during the economic downturn, he added.

Firms involved in the energy supply and medical technology sectors should prove to be good investments, he concluded.

Last week, Jonquil Lowe, author of Save and Invest, a Which? essential guide, stated that people looking to get a decent return on their investment should steer clear of safer options such as savings accounts .

Inflation will erode the amount of money return by such investments, she explained.
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