Many investors are drawn to buy funds that sit at or near the top of the performance league tables. But as the small print of adverts warns, performance can be a poor guide to prospects.
Investors who flocked to buy technology funds in 1999 and 2000 suffered badly as the bubble burst.
More recently, savers pumped billions of pounds into commercial property funds in 2006 and early 2007 on the back of strong growth, only to join the party too late and see the value of their investments slump.
Juliet Schooling, head of research at national investment adviser Chelsea Financial Services, says: ‘It is worrying that so many investors look only at what has performed well in the past year and decide that is where to head for their latest investment.’
Adrian Shandley, who runs independent adviser Premier Wealth Management in Southport, Merseyside, agrees. ‘You wouldn’t try to drive a car using just the rear view mirror, but many investors focus too much on past performance and not enough on looking ahead,’ he says.
Source: This is Money
Filed under: Business News, Economy, Funds, Investors | Tagged: commercial property funds, technology funds


