We know past performance is not a guide to future returns but an analysis of a fund's performance can be one indicator of how well the fund has been run to date, writes Chris Jones. To do this well, however, many more measures and data points are required
Despite the limitations of recent past performance, if an investor tries to find out anything about his or her investment on the internet, this is pretty much what they will find. Whether it is numbers, graphs or ‘Best Buy' lists, it is pretty much the same information and for some years it has been mutually reassuring and self-congratulatory: it has all gone up, so why look any further? From a customer outcome perspective there are a number of problems with unit price returns. Firstly, what happened to the unit price yesterday has a very big impact on so many headlines and the m...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes