Fidelity UK Aggressive fund manager Aruna Karunathilake has urged investors not to shun the UK equity market during the current high-inflation period, expecting many companies to profit from rising prices.
While July's 4.4% inflation level is likely to have had a negative impact on investor confidence, Karunathilake says he identified three areas of the market insulated against rising prices. He believes defensive stocks, which have revenues linked to inflation or the ability to pass on higher rises to their customers, are likely to perform well in the current environment. Karunathilake says National Grid and Tesco, both top 10 holdings in his fund, are good defensive examples. The UK Aggressive manager is also keen on stocks benefiting from the resources boom, with Royal Dutch Shell the fu...
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