Royal Skandia, the offshore arm of the Skandia Group, says FTSE 250 companies are typically at ...
Royal Skandia, the offshore arm of the Skandia Group, says FTSE 250 companies are typically at the forefront of economic recovery. In line with this principle and in view of the turbulent market, Royal has launched four new funds including a Mid 250 fund.
The new funds, from Aberdeen and Schroder, are the Royal Skandia, Aberdeen Progressive Growth, Royal Skandia Aberdeen Property Share, Royal Skandia Schroder Medical Discovery and Royal Skandia Schroder Mid 250.
Phil Morse, Royal Skandia investment brand manager said: "The Schroder Mid 250 fund has been specifically added in response to the current climate, as typically the Mid 250 companies are at the forefront of economic recovery."
Royal reckons the main advantages of investing in FTSE 250 companies is that they often offer greater potential for continued growth than their larger counterparts. It says despite featuring companies such as Debenhams and JJB Sports, few investment houses spend much time researching them, concentrating instead on larger blue chips.
The Mid 250 fund aims to target companies with a unique product or service for which demand is strong. As such, Royal points out that discipline is required to sell theses stocks if signs emerge that increasing competition is diminishing a company's unique advantage.
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