Don't ignore UK equities as inflation rises - Fidelity

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 ...