The Telegraph's investing tips for 2022 – and how last year’s fared

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On the surface, 2021 has been a good year for stock markets. British shares are up 17pc while the US market returned closed to 30pc. The global average was a cool 19pc.

But underneath these headline figures lies a huge disparity in performance from different types of companies, regions and investment strategies: with some areas of the market shooting up 25pc while others lost a fifth of their value. Telegraph Money’s fund picks, made at the end of 2020, were no exception.

Deputy personal finance editor Taha Lokhandwala won the investment competition with Invesco’s EQQQ Nasdaq 100 exchange-traded fund, a tracker portfolio, which owns the largest companies on the Nasdaq exchange, such as Apple and Microsoft. It returned an impressive 29pc.

The Mid Wynd International investment trust, picked by personal finance reporter Will Kirkman, returned 19pc by owning similar companies, while 3i Group, which buys private companies, returned 27pc for former investment reporter Jonathan Jones.

The funds losing the most money all invested in emerging markets. The Baillie Gifford Emerging Markets fund, chosen by Jessica Beard, lost 8pc.

In last place, losing 19pc, was Fidelity China Special Situations, chosen by investment reporter Sam Benstead. He said: “While disappointing to finish last as an investment reporter, I won the competition last year and knew that I was taking a risk by betting on China. A crackdown by the Communist party on its biggest tech stocks crashed my portfolio.”

On the agenda next year will be rising interest rates and inflation, the omicron variant and supply chain issues – but there will be many other events, likely currently unknown, that will determine how markets rise and fall. Our reporters give their views on which funds will perform best.

Xtrackers MSCI World Energy Ucits ETF

After backing Chinese stocks for two years running, I am switching to a fund which tracks the largest oil companies in the world. 

I think omicron will fade and global trade will continue to recover from the pandemic, which will be good for oil prices. A lack of new oil wells and drilling activity due to pressure to cut back on fossil fuels has meant oil supply will be limited, which is also good for prices.

Oil stocks trade of cheap share prices relative to their profits and pay high dividends, so investors will be tempted to snap up shares as inflation takes the sheen off faster-growing companies such as biotech and tech firms.

Sam Benstead

Molten Ventures

Molten Ventures, formerly Draper Esprit, invests in fast-growing, private technology companies in Britain and Europe, including the stockbrokers PrimaryBid and Freetrade.

Companies have stayed away from the public markets to raise the money they need to expand. So for investors looking to get in on the action before firms float their shares, Molten Ventures is a compelling if risky choice. Shares returned 56pc this year and can do well next year as well.

Lauren Almeida 

BlackRock European Dynamic

European shares trade cheaper than US rivals but there are world-class companies there, and they are due a catch up. This fund has an excellent track record and is in the top 5pc of European funds over the past decade.

It buys large, fast-growing companies, such as fashion house LVMH, semiconductor equipment firm ASML and pharmaceutical giant Novo Nordsik.

The shares it buys tend to be “growth” stocks, companies growing quickly with hopefully a share price to match, and on average its holdings are twice as expensive than the market average. This means it’s a risky bet but if European stocks take off next year this fund is in prime position to take advantage.

Harry Brennan

Artemis UK Select 

This year I’m betting on Britain. The London market is trading at a big discount compared to America and Europe, which makes it a good time to get in. 

The £1.3bn Artemis UK Select fund has outpaced the average fund investing in British stocks, returning 16pc over the last year. Over three years, it has grown 61.4pc.

Ed Legget, who runs the fund, recently told us he is betting on airlines and has been buying in while share prices are at multi-year lows. He holds IAG, Ryanair and Jet2. Airlines may seem a risky bet given the renewed travel restrictions but they won’t last forever. There will be pent up demand from eager holidaymakers as soon as restrictions are lifted.

Jessica Beard

Mid Wynd International

Mid Wynd International did well in 2021, taking third place in the Telegraph team’s fund picks and returning 19pc for investors.

The trust, which buys stocks from around the world, sells itself on a slow and steady approach and ability to ride out market upsets due to its broad spread of investments, from tech firms to healthcare companies. With so many unknowns around the corner, I’m happy to stick with this cautious pick for another year.

Will Kirkman

Fidelity Index US

Just when we thought the pandemic was over, the omicron variant arrived and brought stock market jitters with it. Next year could be a bumpy ride but the American markets have proven they can weather storms in the past. 

The growth of firms such as Amazon will likely continue as we move more of our lives online, and a cheap US stocks tracker is a great way to take advantage.

Adam Williams

EQQQ Nasdaq-100 ETF

Inflation is the big risk to the Nasdaq’s biggest companies, which are a who’s who of the biggest technology firms, including Tesla, Amazon and Alphabet, the owner of Google.

But these giant companies are already so ingrained in our lives that even if interest rates go up and investor reevaluate the types of stocks they are after, software, ecommerce and engineering titans will still make a lot of money. 

Investors will ultimately follow the profits and I cannot see a slowdown ahead, so I am sticking with this tracker fund again. It won this year and came second last year. It will bag a medal finish next year I am sure. 

Taha Lokhandwala