When it comes to funds, buy British! UK firms tipped as a dogged bet for recovery

Savers piled £1 billion into UK focused funds in April — the largest influx of cash since the so-called 'Boris Bounce' following the General Election in December, according to research from broker AJ Bell. After suffering heavy falls early on in lockdown, UK equities are also rising steadily, piquing even more interest. Load Error Teodor Dilov, fund analyst at Interactive Investor, says: 'The market falls we have seen this year are a reminder of how important it is to have a diversified range of investments that are not concentrated in one country or type of industry.  'But Britain still houses some of the best companies in the world, and many of their earnings come from overseas.' This fund focuses on medium-sized companies, such as Boohoo, Pets At Home and information firm Ascential. Many investors are now bargain-hunting in the hope they can pick up cheap shares that will rise in value as the country returns to normal. For example, the share prices of Land Securities (a UK property firm), easyJet and Restaurant Group have all started to pick up. James Clunie, head of strategy, absolute return, at Jupiter Asset Management, says: 'The stock of cheap companies might look tempting, but the question is: can they survive? 'Liquidity and balance sheet analysis is needed to find out, which is why this strategy comes with a 'don't try this at home' warning.