Unfashionable funds can offer future rewards

Fashion is a fickle thing and being a dedicated follower can sometimes mean being lumbered with embarrassing mistakes in future years. Last year's Betamax can quickly be become obsolete as VHS soars into ascendancy and what goes for video players goes for equity markets. The asset allocator has a choice of what is in vogue, what is so out of vogue it is bound to look like a shrewd investment in three years time and then there is the timeless elegance option. Such a venture is not an easy task. Looking at the stock market rotation of 1999 - growth stocks were 'out' and cyclicals were 'in...