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Dog Funds

You may have seen articles in the financial press referring to ‘dog’ funds, and wondered what the term means. If so, don’t be concerned, put simply, a ‘dog’ fund is one that is regarded as an underperforming fund.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column width=”1/2″][vc_column_text]

Meaningful comparisons

All investment funds fall into sectors – for example, UK All Companies, Global Equity Income, Japan, UK Smaller Companies or Global Emerging Markets. By classifying funds under these headings, it makes it much easier to make meaningful comparisons.

As well as being compared against each other, they can also be compared against the average performance for all the funds in that sector. If a fund is consistently 10% below the sector average, it can earn the ‘dog’ tag.[/vc_column_text][/vc_column][vc_column width=”1/2″][vc_single_image image=”1638″ img_size=”full” add_caption=”yes”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]

Staying out of the dog house

By keeping a close eye on the performance of your assets, underperforming funds can be quickly identified and monitored, and if necessary, changes made to your portfolio.
The value of investments and income from them may go down. You may not get back the original amount invested.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]By Ivan Lyons, Director, Investment Solutions, Worthing

Contact Investment Solutions: Grafton House, 26 Grafton Road, Worthing, BN11 1QT. 01903 214640 or send an email to Ivan at: ilyons@graftonhouse.net or visit www.investment-solutions.co.uk
Twitter:  @investment_sols[/vc_column_text][/vc_column][/vc_row]