“The UK market should also benefit from inflation and rising inbound interest rates,” he said. “That’s because there’s a lot of stocks in commodities, energy and banks.”
Banks’ profit margins generally improve when interest rates rise because they can charge more on their loan products.
Mr Maguire added that investing money in bonds and cash – such as through the Fidelity Strategic Bond fund and the L&G Treasury Trust – could help cushion the blows to your portfolio during periods of stock market volatility.
Choose high growth investments
Once you’ve built a solid foundation using follow-on funds, there’s a huge range of other exciting, fast-growing investments to add. These are generally more risky, so they should represent a smaller proportion of your portfolio.
James Barton of wealth manager Featherstone Partners pointed out Chrysalis Investments for investors comfortable taking more risk.
“This trust invests in private companies and takes them through to IPO. Some of their most successful seed investments include Klarna and Starling Bank,” he said.
Mr Barton also pointed to the real estate company Urban logistics, which leases distribution centers to online retailers. “Their leases are linked to inflation,” he added. “They therefore offer investors the potential for capital growth and inflation protection, as well as a good yield.”
Mr Morgan said the Baillie Gifford Positive Change The fund, which owns companies like Tesla and Moderna, has paved the way for exciting themes such as transition and green energy technology. “Some of their stocks have performed poorly in recent weeks, but long-term they look great. Now would be a good time to start thinking about their strategy.”