Why You Should Not Chase Star Fund Managers

Published / Last Updated on 13/06/2019

Do not chase fund managers.  They all have good periods and eventually will have a bad period.

Think about high charges - how many companies are taking a slice of your 'investment pie' - e.g. fund manager, fund platform, financial adviser.

Think about consistency of a fund in its sector.  Always look for consistent above average and ideally top quartile performance over multiple periods.

Don't disinvest from a usually consistent fund in its sector just because it had a 'poor' three months.

Be aware that bigger 'supertanker' funds cannot react quickly to adjust portfolio mix and holdings compared to smaller funds.  If you have £10bn (£10,000,000,000) in an investment fund and decide to move just 5% from one sector to another - it's not easy to sell £0.5bn (£500,000,000) of stock in 1 or 2 assets and reinvest the same in other assets without creating market ripples of

Don’t 'have all your 'eggs in one basket'.

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