Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 389

24 hot stocks and funds for 2021

There is always doubt about the future, but 2021 will be especially challenging for investing. Equity markets are at stretched valuations as analysts build in optimism about earnings recovery and stimulus in a post-COVID world. The safety of cash and term deposits offers negative real yields, forcing many conservative investors to take on risk they would otherwise avoid. As they seek an elusive combination of defensive market exposure with reasonable yield, they see others enjoying the growth story by buying companies without profits or dividends. Time will tell who wins.

We contacted two dozen fund managers and product providers, and thanks to the following contributors for their views on 2021:

  • Shane Miller, Chi-X Australia
  • Kris Webster, Magellan
  • Sean Fenton, Sage Capital
  • Steven Bennett, Charter Hall Group
  • Tim Canham and Wik Farwerck, First Sentier Investors
  • Aaron Binsted, Lazard Australia
  • Franklin Global Growth Fund team, Franklin Templeton
  • Gemma Dale, nabtrade
  • David Bassanese, BetaShares
  • Michael Murray, Australian Ethical
  • Nandita D’Souza, Citi
  • Perpetual Investments
  • Australian Equities Growth Team, First Sentier Investors
  • Deana Mitchell, Australian Ethical
  • Roger Montgomery, Montgomery Investment Management
  • Peter Bell, Bellmont Securities
  • Jordan Eliseo, The Perth Mint
  • Alex Pollak, Loftus Peak 
  • Jun Bei Liu, Tribeca Investment Partners
  • Marcus Padley, Marcus Today
  • Orbis Investments
  • Vanguard Investments Australia 
  • Adrian Martuccio, Bell Asset Management

We allowed nominations for listed companies, funds or sectors to give a broad range of opportunities, and you should read the recommendations in that context as some people mention their own funds.

Please note, responses were received around mid-December 2020 and some prices may have changed.

Graham Hand

Download here

 

Disclaimer: Highlighting these stock picks does not constitute any offer or inducement by Firstlinks or the contributing individuals and companies to make any investment. This publication is for general information only and has been prepared without considering any person’s objectives, financial situation or needs and you should therefore consider the appropriateness of the information, in light of your own objectives, financial situation or needs, before acting.

Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf.

To obtain advice tailored to your situation, contact a professional financial adviser. Past performance does not necessarily indicate a financial product's future performance.

 

5 Comments
Mic smith
January 30, 2021

Part of the problem here is that FirstLinks has given a forum to Fund Manager who want to pump the stocks they already own. These guys are doing well enough with their average 1% of assets commission plus usually 20% of benchmark "out performance". They do not need any further help from Firstlinks - or anyone else.

Graham Hand
January 30, 2021

Hi Mic, fair comments, but in the overall balance of its content, Firstlinks devotes relatively little space to stock picking as we prefer to give our readers enduring investment ideas. But the fact is that readers like stock picks, and these articles are highly popular. Little wonder some publications devote their entire content to stock picking, accepting (or ignoring) including the downside you identify of fund managers pumping up their own picks. Doesn't seem to bother them or their readers.

Mic Smith
February 14, 2021

Hi Graham,
Mic here again. Your point that readers love stock picks may well be correct. However your job is to educate readers. There is a whole "finance industry" out there, which when you look objectively, much of it is no more that a predator on the ignorant and gullible. This is what the Hayne Royal Commission was all about attempting to fix. If First Links wants to maintain a position as a genuine credible objective entity that helps the ordinary Australian with its finances, then First Links must do better. Please, start by calling out conflicts of interest.

Dane
January 07, 2021

I really like Cuffelinks but you would serve yourself well if you refrained from publishing market/asset class return forecasts, which are nothing more than guesses. A large body of evidence suggests they are close to worthless. Admittedly fundies will never day "I dont know' when asked about the future but we shouldn't be enablers. lol.

George
January 06, 2021

It will be interesting to see the winners and losers from this list in a year. So often, recommendations are made and there is no back-check. Let's hold the forecasts accountable.

 

Leave a Comment:

RELATED ARTICLES

400th Edition Special: 45 of the best investment ideas

Hot stocks and funds for 2021

banner

Most viewed in recent weeks

Why the $5.4 trillion wealth transfer is a generational tragedy

The intergenerational wealth transfer, largely driven by a housing boom, exacerbates economic inequality, stifles productivity, and impedes social mobility. Solutions lie in addressing the housing problem, not taxing wealth.

The 2025 Australian Federal election – implications for investors

With an election due by 17 May, we are effectively in campaign mode with the Government announcing numerous spending promises since January and the Coalition often matching them. Here's what the election means for investors.

Finding the best income-yielding assets

With fixed term deposit rates declining and bank hybrids being phased out, what are the best options for investors seeking income? This goes through the choices, and the opportunities and risks involved.

What history reveals about market corrections and crashes

The S&P 500's recent correction raises concerns about a bear market. History shows corrections are driven by high rates, unemployment, or global shocks, and that there's reason for optimism for nervous investors today. 

Howard Marks: the investing game has changed

The famed investor says the rapid switch from globalisation to trade wars is the biggest upheaval in the investing environment since World War Two. And a new world requires a different investment approach.

Welcome to Firstlinks Edition 605 with weekend update

Trump's tariffs and China's retaliatory strike have sent the Nasdaq into a bear market with the S&P 500 not far behind. What are the implications for the economy and markets, and what should investors do now? 

  • 3 April 2025

Latest Updates

Investment strategies

4 ways to take advantage of the market turmoil

Every crisis throws up opportunities. Here are ideas to capitalise on this one, including ‘overbalancing’ your portfolio in stocks, buying heavily discounted LICs, and cherry picking bombed out sectors like oil and gas.

Shares

Why the ASX needs dual-class shares

The ASX is exploring the introduction of dual class share structures for listed companies. Opposition is building to the plan but the ASX should ignore the naysayers and bring Australia into line with its global peers.

The state of women's wealth in Australia

New research shows the average Australian woman has $428,000 in net wealth, 40% less than the average man. This takes a deep dive into what the gender wealth gap looks like across different life stages.

Investing

The two most dangerous words in investing

Market extremes are where the biggest investment risks and opportunities lie. While events like this are usually only obvious in hindsight, learning to watch out for these two words can alert you to them in real time.

Shares

Investing in the backbone of the digital age

Semiconductors are used to make microchips and are essential to a vast range of technology and devices. This looks at what’s driving demand for chips, how the industry is evolving, and favoured stocks to play the theme.

Gold

Why gold’s record highs in 2025 differ from prior peaks

Gold prices hit new recent highs, driven by a stronger euro, tariff concerns, and steady ETF buying – all while the precious metal’s fundamental backdrop remains solid amid a shifting global economic landscape.

Now might be the best time to switch out of bank hybrids

In this interview, Schroders' Helen Mason discusses investing in corporate and financial credit securities, market impacts of tariffs, opportunities for cash investments, and views on tier two and hybrid bonds.

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.