Funds leaving a bitter taste in your mouth
10th November 2009
The latest half-yearly LemonAid report from Informed Choice has identified the 264 funds investors need to urgently review.
The LemonAid report highlights those investment funds that are most likely to leave a bitter taste in the mouths of investors. LemonAid looks at a variety of factors in addition to past performance. It also considers risk adjusted return, consistency and cost before arriving at a list of funds in each investment sector that investors need to urgently review.
This third LemonAid report contains the names of 264 funds across the different investor sectors. Informed Choice estimates that over £49bn of investor money is currently invested in these ‘lemon’ funds. This is a £13bn increase from the previous LemonAid survey in March 2009, although 63 fewer funds are now considered to be ‘lemons’.
Informed Choice chartered financial planner Martin Bamford commented:
“Stock markets have come a long way since their low point in mid-March, but many investors will not see this recovery reflected in their own investment and pension portfolios due to the presence of habitually underperforming funds.
“Past performance is only one factor when assessing the continued suitability of a fund. Investors need to look beyond the performance figures at how much risk managers are taking, the cost of their investments and the consistency of returns.
“For every fund identified within the LemonAid report, far more attractive options exist. Modern financial products make it easy and cheap to switch funds, so investors and their advisers need to take proactive steps to fire and replace lemon fund managers.”
The latest LemonAid report is available free to investors who visit www.icl-ifa.co.uk/investment/lemonaid.
