Four funds to own if you’re worried about markets falling

Rising inflation, uncertainty about the omicron variant and central banks putting up interest rates form a potentially explosive backdrop for stock markets after they rose steadily in 2021.

On top of that, Legal & General Investment Management’s Emiel van den Heiligenberg said the preconditions for a bubble forming were in place and stocks were “in the mid-1990s”, pumped up by low interest rates and DIY investor speculation. 

Savers worried about a coming crash can take refuge in funds designed to make money when markets fall. Brewin Dolphin, the wealth manager, put together a list of funds that should do well even if markets turn south. 

BH Macro

This investment trust gives private investors access to hedge fund manager Brevan Howard, whose funds are normally reserved for only the very wealthiest.

It owns a range of assets, including bonds and foreign currencies, all in an attempt to make money regardless of what broader stock and bond markets do. It shot up in value when the pandemic hit in 2020 and has made investors 80pc in the past five years, even when its hefty 7pc fee for the past 12 months is taken into account. 

It charges 1.53pc a year before performance fees are added. 

Rob Burgeman of Brewin Dolphin said: “It is not without its risks and it isn’t cheap either, with a relatively high ongoing charge. But does it have its role to play and does it do what it says it will? The answer has to be an unequivocal yes.”

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