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.

 

  •   6 January 2021
  • 5
  •      
  •   
5 Comments
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.

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.

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.

 

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

How cutting the CGT discount could help rebalance housing market

A more rational taxation system that supports home ownership but discourages asset speculation could provide greater financial support to first home buyers.

Is there a better way to reform the CGT discount?

The capital gains tax discount is under review, but debate should go beyond its size. Its original purpose, design flaws and distortions suggest Australia could adopt a better, more targeted approach.

Want your loved ones to inherit your super? You can’t afford to skip this one step

One in five Australians die before retirement and most have not set up their super properly so their loved ones can benefit from all their hard work and savings. 

Welcome to Firstlinks Edition 648 with weekend update

This is my last edition as Editor of Firstlinks. I’m moving onto a new role though the newsletter will remain in good hands until my permanent replacement is found.

  • 5 February 2026

Super is catching up, but ageing is a triple-threat

An ageing Australia is shifting the superannuation system’s focus from accumulation to the lifecycle of retirement. While these pressures have been anticipated for decades, they are now converging at scale and driving widespread industry change.

Meg on SMSFs: Last word on Div 296 for a while

The best way to deal with the incoming Division 296 tax on superannuation is likely doing nothing. Earnings will be taxed regardless of where the money sits, so here are some important considerations.

Latest Updates

Economy

Has Australia wasted the last 30 years?

The 20 years after Peter Costello left Treasury have been deemed wasted...by Peter Costello. The missed opportunities for Australia began long before.  

Retirement

Navigating the next stage of life in retirement

Retirement planning is more than just saving enough money. Long-term care needs, housing choices, and social networks are just as critical for a happy and enjoyable life.

Strategy

Showcasing your value in the age of AI shortcuts

Knowledge is becoming commoditized in the age of artificial intelligence but experience, taste, and judgement are still at a premium.

Planning

Financial advice as the pathway to economic security

Financial advice can lead to improved financial literacy, a healthier super balance and a higher standard of living in retirement. Is now the time to give yourself the gift of financial advice?

Economy

The overlooked driver of energy inflation

The impact of energy policy on inflation in Australia is often overlooked. Transitioning to renewable energy can lead to inflated costs that affect the entire economy and productivity growth.

Economy

A 2026 rotation story: Europe’s undervalued small caps

In 2026, Europe is poised for a 'Goldilocks' scenario with cooling inflation and lower rates, driven by fiscal stimulus. Small caps offer an attractive entry point before capital rotation.

Investment strategies

What we do when things go up (a lot)

Recent price spikes, particularly gold's surge, trigger behavioral responses like availability bias, storytelling, extrapolation, and FOMO, which create self-reinforcing feedback loops influencing investor sentiment and market trends.

Sponsors

Alliances

© 2026 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.