So-called 'large cap' firms are still the best choice for those looking to make UK-based investments, according to one expert.
Hak Salih, manager of the Santander Equity Income Unit Trust investment fund, believes that 'mega caps' with large exposure to dollar markets are the most attractive of these firms.
"These continue to look attractive, with strong balance sheets, stable earnings prospects and growing dividends at attractive initial yields," he said.
Pharmaceutical firms should provide good returns for investors for just this reason, he added.
Major UK banks could also offer good investment opportunities as recent falls in their share prices mean that many are "trading below book value".
He indicated that Barclays, Lloyds and Royal Bank of Scotland are three such institutions.
Yesterday, writing for the Financial Times, Steve Johnson claimed that equities can help investors avoid the effects of inflation .
According to Mr Johnson, long-term investments in the stock market have always out-performed inflation.
Larger caps best investments, expert claims
Larger caps best investments, expert claims
Wed, 03 Sep 2008
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