Investors must take advantage of growthopportunities

Over the past three years, defensive and value stocks have helped equity income portfolios outperform but there are signs funds are becoming overexposed to such stocks at the expense of growth companies

UK equity income funds have been popular over the past year or two and are likely to remain so this Isa season. As an UK equity income fund manager I am well aware of the merits of the sector both recently and over the longer term. The combination of income and capital appreciation that has more than matched the more growth-orientated areas of the market in the past, meets most investors' basic requirements. However, after three years of bear markets in which investors have become less confident about the total returns available from equity investment, another argument has been touted ...