AIM for Growth

I recently shifted my investment strategy to focus on UK growth stocks in the search for higher returns than that on offer in the FTSE 100. As a result, this has lead my research into the FTSE AIM index, which is a market for smaller growth companies to raise capital to fund expansion. The AIM index provides a great alternative to the FTSE 100 for portfolio selection and offers a host of benefits for new investors. SOURCE OF GROWTH The FTSE AIM 100 is full of great stocks, including names such as Fevertree, Boohoo Group PLC, and my previously discussed AB Dynamics . Such stocks have produced stunning returns over the years such as a 1500% return since 2015 for AB Dynamics and over 1300% return for Fevertree within the same time period. It is important to understand though that due to such great returns there is the potential for equally large downside. For example, the recent collapse of Burford Capital which dropped over 60% in one week. This is why I would suggest that AIM...

If you like the look of FTSE 100 data giant Experian then it may be worth looking in a similar sector at the AIM growth company, GB Group. Due to less coverage on the index, there is potential for the stock to achieve relatively higher levels of growth and hence deliver greater returns over the medium to longer-term for investors. WHAT THEY DO GB Group is an identity management company, with a market cap of £1.13 billion and is listed on the software and services sector of the FTSE AIM All-Share index. The company centers on the analysis of data in a variety of services such as user identification, customer on-boarding, and employee screening. GB Group has performed well for investors in the past, achieving a 120% return for investors since 2016. In this blog, I explore why I think the business is positioned to continue to provide superior returns in the long run. BIG DATA I recently spoke about the growing importance of big data in today’s society, with the ...

When investing in the UK market I normally focus my research on FSTE AIM stocks as I think this is where greater growth can be found as the FTSE 100 is very well covered in comparison to small and mid-cap stocks. This means that the market has priced in future growth for the relevant companies.  However, the FTSE 100 does offer a variety of companies that can provide a good source of steady growth to mitigate risk in your portfolio against smaller, higher-risk growth stocks. A FTSE 100 giant that I think will do well over the long term is Experian, providing a steady stream of growth to support an investor’s portfolio.  WHAT THEY DO? Experian is a global information servicing company, supplying global services to over a billion people. They are most famous for their credit checks business, currently one of the top three credit checking agencies globally, but they also offer a variety of information processing services.   From an investment perspective, th...