How to Invest in AIM Companies

AIM can be a fertile hunting ground for investors, but it can also be a minefield. Two top AIM investors give Morningstar some tips on how to find the winners and screen out the losers.

David Brenchley 28 February, 2018 | 3:03PM

Online retailer Asos is an AIM success story, alternative investment market

While generally smaller companies have the ability to outperform larger ones over the longer term, investing in these firms is not a simple discipline. While the Alternative Investment Market (AIM) has thrown up some excellent companies, it’s also had its fair share of failures.

In fact, while the UK’s mid-cap index, the FTSE 250, has well outpaced the blue-chip FTSE 100, AIM has lagged. Since June 1, 1998, the FTSE 250 has grown almost sixfold compared with the FTSE 100, which has returned just shy of 150%. In contrast, the FTSE AIM All Share has grown just 10.72%, according to Morningstar Direct data.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
ASOS PLC1,145.50 GBX8.07
Domino's Pizza Group PLC286.50 GBX2.76
Fevertree Drinks PLC1,170.62 GBX4.05
Gresham House Strategic plc889.80 GBX0.54
Mears Group PLC124.50 GBX-0.40

About Author

David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk

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