Income and growth investing are often presented as binary options – income funds tend to favour more mature companies that return excess cash to shareholders via dividends , while growth funds prefer companies that plough their profits back into the business to fund future expansion .
Premier Miton UK Multi Cap Income is a rare example of a fund that offers investors both . It is managed by Gervais Williams and Martin Turner , who provide exposure to a range of stocks , from largecap behemoths to up-and-coming small caps , all while maintaining a preference for companies that can increase their dividend . The fund has around a quarter of its assets in the FTSE 100 , a third in FTSE Small Cap and FTSE 250 firms , and another third in AIM stocks . It also has a FTSE 100 put option worth 1 % of the portfolio , which helps limit losses when markets fall . This position served it well during the Covid-inspired market collapse in March 2020 . However , the managers are far from bearish on the UK , arguing that while listed small caps may be “ a bit boring ”, they will come good when the “ unicorns ” run out of cash . Williams noted a lack of support from central banks will make it more difficult for start-ups to borrow , and more expensive when they do . “ That is particularly unwelcome for private businesses with a lot of debt – if the cashflow reduces , that doesn ’ t work ,” he said . “ I am anxious about the outlook – quite a few will get into trouble and
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