Understanding the risks of Small Companies Funds

Linton

pip895 wrote: »

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It would be very interesting to compare the 10+ year graphs for the FTSE 250 a well - Anyone got a link?

Trustnet/tools/charting can go back further than 10 years for some things. Start off with a preset time period and then adjust the dates. I have got the FTSE100/FTSE Allshare/FTSE250 back to 1980. It is very noticeable that the FTSE250 is close to the other ones until 2002 after which it shoots up amazingly.

pip895

cathybird wrote: »

Pip895, I had been looking at Cazenove - do you have other reasons for reducing your exposure to it? ...

My reasons are
1. It is too big for a SC fund
2. Most of its over performance compared to say Unicorn SC was over 18 months ago
3. It is soft closing which I always take as a bit of a negative
4. It is more volatile than other SC funds I have.
5. I like other funds in the sector even more:)

cathybird

pip895 wrote: »

My reasons are
1. It is too big for a SC fund
2. Most of its over performance compared to say Unicorn SC was over 18 months ago
3. It is soft closing which I always take as a bit of a negative
4. It is more volatile than other SC funds I have.
5. I like other funds in the sector even more:)

Thanks - very much food for thought.

coastline

pip895 wrote: »

Yes I have noticed that - some funds also get driven into the FTSE 250 because of their success - Cazenove UK Small Companies is one I think - it is one reason I have been reducing my exposure to it and moving to smaller funds such as Unicorn SC.
It would be very interesting to compare the 10+ year graphs for the FTSE 250 a well - Anyone got a link?

Companies outside the FT350 can be seen here..

http://en.wikipedia.org/wiki/FTSE_SmallCap_Index

this link has market capitalisation around 2%..

http://www.ftse.com/Indices/UK_Indices/index.jsp

Using Trustnet...you can go back to 1986 with the link below.

http://www.trustnet.com/Tools/Charting.aspx?typeCode=NUKX

Add FTSE Small Cap index to the chart... then on the Timescale setting load up 01/01/1986 to 01/01/2014.
Over the last 10 years it shows the FTSE 100 has returned 116% with dividends reinvested....the FTSE Small Cap 131%.
Since launch the FTSE 100 returned 1260% and the FTSE Small Cap 1135%.
In periods of decline the fall has been greater for the Small Cap than the FTSE 100.

A link with all three...A is the FTSE 100.. B is the FTSE Small Cap.. C is the FTSE 250