Inflation unexpectedly dipped this summer as food and clothing prices fell. But investors should be keeping an eye on the long-term effects even low inflation can have on investment returns, says Leonora Walters in the Investors Chronicle. One way of mitigating this is to consider investing in the equity income sector, which, suggests Adrian Lowcock at Axa Wealth, can provide a higher yield than inflation.
One option is the PFS Chelverton UK Equity Income fund. This open-ended investment company (Oeic) has done very well in recent years trouncing the performance of the FTSE All-Share, FTSE 250 and FTSE Small Cap indices, as well as its benchmark, over one, three and five years. According to Trustnet, it hasdelivered returns of 9% over one year, 75% over three years and 127% over five years. It currently yields 4%.
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| Phoenix Group | 2.10% |
| Galliford Try | 2.00% |
| Ashmore | 1.90% |
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| Berkeley Group | 1.60% |
| FDM | 1.50% |
| Segro | 1.50% |
| Clipper Logistics | 1.40% |
| Kier Group | 1.40% |
| Majestic Wine | 1.40% |
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