There are now more natural resources firms in the FTSE 100 share index than banks, meaning such firms might represent a good investment .
According to Fidelity UK Growth manager Tom Ewing, around 16 per cent of the blue-chip benchmark is now invested in mining and basic resources companies and they have now edged ahead of banks.
Mr Ewing believes that such firms will continue to prove a good investment for those looking for a high return on their cash .
He said: "In my view, the outlook for natural resources companies continues to be positive, thanks to demand for metals and other materials in Asia. China is in the midst of development phase that is extremely resource intensive."
The fact that metal prices are currently very high is also good news for those with investments in mining stocks, he added.
Yesterday, Rajesh Shant, manager of the Newton European High Income Fund, claimed that firms with strong balance sheets, cash flows and earning are attractive to investors as they are well positioned to exploit weaker firms.
Natural resource firm ripe for investment, expert states
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Natural resource firm ripe for investment, expert states
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