Best Fidelity Funds for 2023 in the UK: Expert Picks and Investment Strategies

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Introduction

In this article, we will discuss the top Fidelity funds for the year 2023 in the UK. These fund picks are carefully selected by Tom Stevenson, a renowned expert in the field. Tom Stevenson believes in investing for the long term and considers these funds to be ideal core holdings in a portfolio. Despite the challenging economic conditions, Tom predicts that the markets will perform well in 2023. As an expert copywriter, we will delve into the details of each fund, highlighting their key features, investment strategies, and potential growth opportunities.

Global Equity Funds

Tom Stevenson’s first fund pick is the “Dodging Cox Worldwide Global Stock Fund,” which is known for its contrarian and value-focused approach. This fund specifically targets shares that are currently out of favor in the market but possess long-term growth potential. The companies in the fund’s portfolio are typically medium-sized or large, well-established businesses that trade at a lower price compared to their industry peers. Additionally, these shares often provide a higher than average dividend yield.

The second Global Equity Fund recommended by Tom Stevenson is the “Edinburgh Worldwide Investment Trust.” This fund takes a higher risk approach by investing in smaller companies worldwide, some of which are not yet listed on public stock markets. The fund, managed by Baillie Gifford, focuses on identifying mold-breaking companies with high growth potential. Although this investment carries greater volatility, the closed nature of an investment trust allows for a longer-term view and helps avoid selling investments at an unfavorable moment during market downturns.

Fixed Income Fund

With the anticipation of falling interest rates and a potential recession on the horizon, Tom Stevenson advises adding a fixed income fund to the portfolio. His recommended choice is the “Colchester Global Bond Fund” which specializes in lending to governments globally. This fund specifically focuses on developed countries. Tom expects government bonds, particularly sensitive to interest rate changes, to outperform corporate bonds that carry additional company-specific risks. The Colchester Global Bond Fund is an ideal safe haven for investors concerned about a potential recession.

Defensive Package Fund

To combine all the recommended investment strategies into one defensive package, Tom Stevenson suggests the “Pierpoint Global Total Return Fund.” This fund offers a diverse range of assets, including shares, bonds, and cash. Managed conservatively, it has the ability to increase its exposure to stock markets when they experience a decline, thus capitalizing on the opportunity to buy shares at discounted prices. The fund is designed for investors who prefer to entrust their asset allocation decisions to a professional manager.

Conclusion

Tom Stevenson’s fund picks for 2023 reflect his optimistic outlook on the markets despite the current economic challenges. The selected Fidelity funds offer diverse investment strategies that cater to different risk appetites and investment goals. For investors seeking a defensive approach, the Dodging Cox Worldwide Global Stock Fund and the Edinburgh Worldwide Investment Trust provide opportunities for long-term growth. On the other hand, the Colchester Global Bond Fund presents a safe haven in uncertain times, while the Pierpoint Global Total Return Fund combines all the recommended strategies into one well-diversified package.

Investors should remember that market conditions are unpredictable, and investing always carries risks. However, by carefully considering these expert picks and aligning them with their own investment objectives, investors can position themselves for potential growth in 2023.

**Disclaimer: The information provided in this article should not be considered financial advice. Investors are advised to conduct thorough research and consult with a financial professional before making any investment decisions.