13 June 2019
You might not be able to buy a Ferrari or Aston Martin to wow your Dad on Father’s Day but Brewin Dolphin, one of the UK’s leading wealth managers, says you could think about treating him to a little luxury and buy shares in his favourite brands instead.
When it comes to investment stocks, what would today’s fathers aspire to? The petrol head may well like Aston Martin or easyJet, stylish men might be drawn to Boohoo and Watches of Switzerland, and those with a passion for food and drink might prefer modern brands like Just Eat and Fevertree.
“These are all live, fast stocks and brands which many fathers will aspire to and recognise,” says Charlie Caton, Investment Manager at Brewin Dolphin. “However, while they are good ideas, the reality of these stocks is that they offer fast growth potential but with volatility. They do carry the risk of financial injury and they do not offer any income, which makes them less dependable. Stocks like Fevertree and easyJet, for example, halved in value last year which gave many investors a bumpy ride.”
To balance out the volatility of these exciting and fast stocks, Charlie suggests thinking about investing in collectives which capture the excitement that fathers crave but with less volatility and less chance of permanent capital or income loss.
Charlie continued: “We all have dependents to look after so we need to keep our investments as safe as we can. Collectives like Standard Life Smaller Companies Investment Trust and Old Mutual Mid Cap Fund offer potential exposure to the excitement we fathers like as they are still slightly higher than average risk. But they have a little less stock-specific risk and are more diversified which will help to protect investments.”
Standard Life Smaller Companies Investment Trusts aims to provide long term growth by investing in a portfolio of shares of smaller companies including J D Sports. Old Mutual Mid Cap Fund invests in small and medium-sized companies such as Workspace and Boohoo Group.
Five fast stock ideas for Father’s Day:
- Aston Martin
- Watches of Switzerland
- easyJet
- Boohoo (Man)
- Fevertree
And less risky ideas…
- Standard Life Smaller Companies Investment Trust
- Old Mutual Mid Cap Fund
Disclaimers:
- Brewin Dolphin is not a stock broker and does not take instructions to purchase individual stocks. Our advisers construct a bespoke discretionary portfolio that is suitable for their clients.
- The value of investments can fall and you may get back less than you invested
- The opinions expressed in this document are not necessarily the views held throughout Brewin Dolphin Ltd.
- Past performance is not a guide to future performance
- We or a connected person may have positions in or options on the securities mentioned herein or may buy, sell or offer to make a purchase or sale of such securities from time to time. In addition we reserve the right to act as principal or agent with regard to the sale or purchase of any security mentioned in this document. For further information, please refer to our conflicts policy which is available on request or can be accessed via our website at www.brewin.co.uk.
- This information is for illustrative purposes only and is not intended as investment advice.
- No investment is suitable in all cases and if you have any doubts as to an investment’s suitability then you should contact us.
- Please note that this document was prepared as a general guide only and does not constitute tax or legal advice. While we believe it to be correct at the time of writing, Brewin Dolphin is not a tax adviser and tax law is subject to frequent change.Tax treatment depends on your individual circumstances; therefore you should not rely on this information without seeking professional advice from a qualified tax adviser.