If you invest in a Baillie Gifford fund, you know you are in for a bumpy ride. Never was this more obvious than in 2021 and 2022, when growth stocks climbed to record highs only to tumble down just as spectacularly when Russia attacked Ukraine. But one portfolio in its stable, Monks Investment Trust (MNKS), has since adopted a less aggressive strategy, offering access to a well-balanced growth portfolio at a discount.
- Diversified growth strategy
- At the lower-risk end of Baillie Gifford’s approach
- Plenty of room for recovery after a terrible 2022
- Discount to NAV
- Could underperform if Magnificent Seven continue to dominate
- Stubbornly high interest rates are a potential headwind
The outlook for growth stocks is caught between two poles. There is much optimism in US markets following the election of Donald Trump to the White House, while the economy has proved resilient so far and interest rates are on a downward path. As we noted earlier this month, Bank of America's global fund manager survey recently pointed to "super bullish" sentiment among professional investors.