Q. The last time I reviewed my portfolio of investment funds was about 4 years ago. How often SHOULD I be doing this and what action should I take now?
A. According to fund firm, T Bailey, one in three funds that were top performers three years ago are now in the bottom half of the league tables. T Bailey has calculated that £8.3 billion of investor money is sitting in former star funds whose performance has plummeted.
They have blamed fund manager movements for many of the problems. 1 in 4 of the top performing funds in the first 3 year period suffered a subsequent change of manager.
Our advice is for you to seriously consider reviewing ALL the funds in your portfolio and then re-investing the money in a carefully constructed portfolio of passive and index funds. These funds aim to give you the return of the stock market (or index). The result is that costs are lower and you also remove any reliability on fund managers.
