But as times get a little more challenging for the sector, so the question becomes, which one do investors prefer – The Old Mutual UK Smaller Companies Fund or the SLI UK Smaller Companies Fund?
But, while both funds have enjoyed a good performance over the course of the last few years, there is no doubt that the sector is currently looking a little more challenging.
Peter Lowman, Chief Investment Officer at Investment Quorum, says: “It doesn’t really matter which sector you look at, the small and mid cap market has had a pretty good run over the last few years and the easy money has now been taken.”
He adds: “Lately investors have been taking money out of small caps because they have had a good run and now there is a view that the large caps might be looking better. This is particularly a challenge in smaller companies where liquidity can sometimes be a problem.”
So which fund comes out on top? Click here for our experts' opinions.
