When IFAs makes portfolio diversification remmendations, mining stocks are probably not the first sector that springs to mind.
But First State Investments, which has its own specialist research team, presents an interesting argument which suggests investing in mining firms and their relevant support services could be a good long-term asset allocation as a specialist unit trust, regardless of the pressures on the oil price. Rather than look specifically at mining stocks, the First State Global Resources Fund – still in at infancy as it was only launched in October 2003 – also looks at energy firms and the support service companies which make it possible to mine commodities such oil, coal, gas, as well as precious...
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