Talking Point  

Advisers split over value vs growth funds

Advisers split over value vs growth funds
(credit: Photo by Karolina Grabowska via Pexels)

Advisers are split on whether they prefer value over growth funds, according to the latest FTAdviser poll for Talking Point.

The poll asked advisers: To what extent do you favour value stocks over growth stocks? 

While a fifth of advisers said they were neutral on style, 20 per cent said they were either very much in favour or slightly in favour of value stocks.

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The remaining 16 per cent were in favour of growth stocks: 10 per cent slightly in favour, while 6 per cent were very much in favour.

According to Alessandro Dicorrado, portfolio manager within the value team at Ninety One, he does not believe there needs to be a rule that both should be owned all of the time.

Dicorrado added: “There will be times when ‘value’ is expensive and ‘growth’ is cheap, in which case perhaps the investor should be fully in growth stocks. 

“Conversely, there will be times when ‘growth’ is expensive, in which case perhaps the investor should be fully in ‘value’ stocks. Of course, if ‘growth’ is cheap then the same fund might have both growth and value.”