Kevin Murphy, co-manager of Schroder Income, tells us why stock markets are irrational and growth is like, "sirens pulling you onto the rocks," in this week's interview. Kevin also shares why the managers have been trimming their exposure to oil and gas and the banking sectors in favour of consumer retail names. We wrap up with the million pound question: value or growth?

What's covered in this episode:

• Emotions and extrapolation in financial markets
• Why profits are indeed important 
• How focussing on the numbers can ensure strong, long-term returns
• High interest rates and capital growth and risk profiles
• Why the outlook for value remains bright
• How selling decisions are reached and finding the next opportunity
• Cheap buys vs cheaper buys

More about the fund:
Schroder Income is a deep value driven fund, investing in companies valued at less than their true worth and waiting for a correction. It has little correlation with other income funds, tending to avoid the big income producers in favour of more niche names, where both capital and income have the potential grow significantly. It is a UK equity fund that seeks to balance dividend yield with dividend growth and balance sheet safety to achieve a growing income. This approach is not without risk and performance can be volatile.

Learn more on fundcalibre.com

Please remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.

Learn more on fundcalibre.com

Please remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.