Simon Evan-Cook: The mindset that should drive fund buyers

The challenges of picking a good fund and fund manager - and continuing to hold them during a ‘performance cycle' - offers us an important insight into the benefits of investment portfolio diversification.  Many of the challenges stem from the fact that, even though we know from past experience they deliver for our investors, funds are intangible, hard-to-predict in terms of how they will perform, and susceptible to good and bad periods of performance. In contrast, buy a car and you can see it looks good and you can take it for a spin. You expect to drive it today, and every day, for ...