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Investment funds can come in many shapes and sizes. This can include exchange-traded funds (ETFs), mutual funds, investment trusts, and more. Because I want to try to beat the market, I’m not interested in funds that act as trackers (eg B). FTSE 100). So here are my favorite actively managed funds that I think will do well in 2023.
Ideas for income
The first area I want to look at is the dividend payout. For this, I like some real estate investment trusts (REITs). One of the conditions to get favorable tax treatment is that REITs must pay a portion of their income to investors as dividends.
So, I put it on my list Supermarket Income REIT (5.64%), Warehouse REIT (5.81%) and Workplace Group REIT (5.30%) is the dividend in parentheses.
As the names suggest, my focus here is on commercial property, not residential. I feel that this property market environment should be stronger in 2023, so I hope to make my future dividends more certain.
In addition to REITs, there are other ideas I like that focus on holding lots of income-producing stocks. For example, renewable energy is a long-term theme that I think will do well in 2023 and beyond. So I like it Bloomfield Solar Income Fund (6.05%) and Vision solar fund (6.11%) Both focus on investing in solar assets, generating profits in the process.
I need to be aware of the risk of not guaranteeing future dividends with any income fund. I have to keep this in mind when thinking about my investment choices.
Investment fund for growth
The other side of the coin is capital growth. Given the relatively poor performance of global equities this year, I think 2023 could be a comparatively better year. I feel like a lot of bad news has happened this year.
I am confident in my ability to pick large cap stocks well, so I look for trustees who have expertise in a particular area. This includes small cap/penny stocks, private companies and emerging market (non-UK) stocks.
So I put together my wish list. Aberforth Small Companies Trust, Pantheon International And Templeton Emerging Markets.
I accept that these stock market positions are more risky than buying FTSE 100 shares. Especially when it comes to Pantheon (which invests in private companies), I would underperform if it made poor investments. Unlike publicly traded stock, selling a stake in a private company can be difficult. But, on the flip side, the potential for returns is also huge.
Building my wish list
Now I don’t have money to buy these coins. But throughout Q1 2023, I plan on trying to buy as much as possible given my positive outlook.