How does Numis Smaller Cos index compare with FTSE 100?

ON UK GROWTH

Franklin Templeton's Paul Spencer looks at how investors can get better exposure to younger, more dynamic growing companies in the NSCI.

The UK small-and mid-cap universe contains many high-quality companies with dynamic growth prospects, collectively offering radically different sector exposure to the FTSE 100 index. As represented by the Numis Smaller Companies index (NSCI), small and mid caps have returned around 300% over the past 10 years. The NSCI runs from £1m market cap up to about £1.5bn. There is a very big difference by sector within the NSCI and the FTSE 100, and that is something to bear in mind when you are looking at how the two indices might actually perform. Other than pure coincidence, you are n...