Large caps to benefit from risk aversion rise

As large-scale equity bull run comes to an end investors are beginning to question whether UK Smaller Companies funds are worth the extra risk

The large versus small-cap debate continues to rumble on with the market currently favouring blue chips. Still, arguments continue as to the long-term sustainability of returns in both sectors. Small and mid-cap managers maintain that while returns may slow, their area of the market is the only place to find true growth companies, while large cap managers point out that blue chips are the only reliable source of growth. According to Robin Griffiths, global investment strategist and head of asset allocation at Rathbone Investment Managers, we are now nearing the end of the current equity b...