As a result, funds offering some downside protection are likely to see some renewed attention going forward. To this end, this week’s head-to-head pits the Fidelity Enhanced Income Fund against the Schroder Income Maximiser Fund to see which one comes out tops and which is likely to do better if we do see a turnaround in markets.
At £247m, the Fidelity fund is significantly smaller than the £1,121m Schroder fund, but both employ a similar buy-write strategy to lock in gains at the expense of some of the potential capital gains, but both have a significant track record in the market and could outperform in a down market.
