Technology was the best performing investment trust sector in the first half of 2024, according to data from the Association of Investment Companies.
In the first six months of 2024, the tech sector produced a return of 28 per cent, compared with the average investment trust return of 8 per cent.
The growth capital sector generated the second highest return of 22 per cent, while the private equity sector came third with a return of 21 per cent.
Annabel Brodie-Smith, communications director of the AIC, said: “After two challenging years, investment trust performance has bounced back strongly in the first half of 2024.
"Many headwinds remain including uncertainty over prominent elections, continuing conflicts and damaging cost disclosure regulation but cooling inflation, the prospect of interest rate cuts and resilient growth are helping many investment trusts deliver strong performance."
Brodie-Smith said the rise of artificial intelligence has driven much of the technology sectors' success.
"It’s interesting to look at the short-term winners, but it’s important to remember that investment is all about the long term. Investors need to build a well balanced portfolio of investments which meets their needs over time," she added.
tara.o'connor@ft.com
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