Underperforming funds making a comeback - what are the best investments now?

Frozen interest rates are helping previously poor performing funds make a comeback, we reveal the top investments

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(Image credit: Getty Images)

Rising interest rates and high inflation weighed on stock markets for much of last year but investors may finally be benefiting from signs of a recovery.

As inflation slows and attention turns to the prospect of interest rate cuts, stock markets have experienced an upswing in the past two months, research suggests.

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Total return in sterling from 1 November 2023 to 4 January 2024, FE Analytics
Technology and growth capitalTotal return
Schiehallion Fund:59.5%
Baillie Gifford US Growth Trus27.5%
Nikko AM ARK Disruptive Innovation32%
Augmentum Fintech32%
Seraphim Space Investment Trust:27.5%
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Total return in sterling from 1 November 2023 to 4 January 2024, FE Analytics
Real assetsTotal return
Tritax Eurobox32,5%
Gore Street Energy Storage30.5%
JLEN Environmental Assets Group25.5%
TR Property24.5%
abrdn European Real Estate21%
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Total return in sterling from 1 November 2023 to 4 January 2024, FE Analytics
Smaller companiesTotal return
Henderson Smaller Companies25%
Edinburgh Worldwide21.5%
JPMorgan US Smaller Companies23%
JPMorgan UK Smaller Companies Investment Trust:21%
Xtrackers Russell 2000 UCITS ETF16%
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Total return in sterling from 1 November 2023 to 4 January 2024, FE Analytics
BiotechnologyTotal return
Pictet Biotech27%
Polar Capital Biotechnology:22%
Biotech Growth Trust:20%
Marc Shoffman
Contributing editor

Marc Shoffman is an award-winning freelance journalist specialising in business, personal finance and property. His work has appeared in print and online publications ranging from FT Business to The Times, Mail on Sunday and the i newspaper. He also co-presents the In For A Penny financial planning podcast.