There is an abundance of information out there at the moment on where to invest for 2014 and where not to – which can all make picking a sector or fund that tiny bit harder.

With this in mind the research and fund management teams at investment platform, Hargeaves Lansdown, provide some insight into where they are thinking of investing within their own portfolios.

Mark Dampier (Head of Research): “Europe has been shunned by investors and I take this to be a good contrarian buying signal. I recently invested in the Neptune European Opportunities fund, where manager Rob Burnett is confident the economic and financial crisis has passed.

“He has therefore been investing in companies he believes will benefit from continued economic recovery, including banks, car manufacturers and utility companies. It is a higher risk fund, partly because he has a bias towards smaller and medium-sized companies, and that fits with my other investments”.

Richard Troue (Investment Analyst): “With interest rates likely to remain low throughout 2014 I expect equity income funds to remain popular and I believe they can form the core of many a portfolio. Blending funds that focus on larger companies, such as Artemis Income, with flexible funds investing in companies of all sizes, such as Rathbone Income, is a sensible strategy in my view”.

Kate Marshall & Charlie Huggins (Fund Analysts) and Danny Cox (Head of Financial Planning) are considering the M&G Recovery fund, managed by Tom Dobell. The fund has had a difficult couple of years as the manager’s approach of investing in significantly out-of-favour businesses and waiting patiently for them to return to health has not worked. Charlie Huggins notes “the UK economy is recovering though and this could lead to a pickup in merger and acquisition activity, which has historically been beneficial for the fund”.

Adrian Lowcock (Senior Investment Manager): “I am considering the Newton Asian Income fund. Asian and emerging markets performed poorly in 2013, but my eye is firmly on the long term. Asian economies are growing at a healthy rate; the population is younger than in the West; and corporate governance has improved over the past 15 years. As such, I believe Asia is full of quality companies capable of growing dividends over the longer term”.

Adam Laird (Passive Investment Manager): “I believe there are good reasons to add to fixed-interest holdings in 2014. There are short-term risks, such as interest rates rising and the US government reducing its quantitative easing programme, which could cause bond prices to fall. However, over the past decade bonds have been less volatile than shares, while any short-term bond price falls mean higher yields provide some compensation. I will be topping up my BlackRock Corporate Bond Tracker“.

Lee Gardhouse (Investment Director) and Roger Clark (Fund Manager): are both looking at the long term and taking an adventurous stance by investing in UK smaller companies. They are both positive on the prospects for the newly launched Marlborough Nano-Cap Growth fund, which invests in some of the UK’s smallest companies.

“This fund is now closed to new investment, but Roger Clark adds “for investors seeking exposure to smaller companies we also like the Marlborough UK Micro-Cap Growth fund. It is managed by the same team, the main difference being UK Micro-Cap Growth invests predominantly in companies less than £250 million in size, while Nano-Cap Growth invests predominantly in companies less than £100 million in size”.

David Smith (Fund Manager): “Despite strong performance, particularly in the first half of 2013, I continue to believe the Japanese stock market looks good value on a number of measures. Japanese corporate earnings and profit margins continue to recover but investors have not fully accepted this; while Prime Minister Shinzo Abe’s reforms are showing early signs of success. I believe the GLG Japan CoreAlpha fund is worthy of consideration for exposure to Japan”.

Ellen Powley (Fund Manager): “One of the most interesting events of 2014 should be the launch of Neil Woodford’s new venture after he leaves Invesco Perpetual in April. There are limited details currently as to what his plans are, but I plan to remain invested in his Invesco Perpetual funds up until his departure. I will then consider backing him in his new venture if appropriate”.

Matthew Gregg (Quantitative Analyst): “I have just added Richard Buxton’s Old Mutual UK Alpha fund to my portfolio. I believe larger companies are the most attractively valued area of the UK market and this is where Richard Buxton predominantly invests. He has a long track record of success and I believe there is going to be greater emphasis on stock picking in the coming year which should benefit those with a more concentrated portfolio like Richard Buxton, who currently invests in fewer than 40 stocks”.