Investment Fund returns can be contrary, as whilst short-term gains are welcomed, quite often the mid to long-term performance of any particular fund sector is more important to the prudent investor.
Recent data from the Investment Association (formerly the Investment Managers Association) shows that the performance of various sectors can differ quite considerable over the short to medium to long-term.
This can be illustrated by the fact that the 2015 year-to-date performance of the China and Greater China sector came top of the class, with a gain of 24.43%. However, its 3-year performance only put it in third place, seeing returns of 19.45%.
Top of the class over that same 3-year period goes to the UK Smaller Companies sector, recording gains of 20.1%, although its 2015 year to date performance only managed a gain of 10.82%, relegating it to 6th place over this investment period.
Consistency of performance is obviously to be desired by many investors, as can be seen by the Asia Pacific Including Japan sector, which recorded a 2015 year to date performance of 13.39%, to put it in 4th place in that period. It managed a consistent 13.63% over the 3-year period, but that only put it in 16th place in the performance league tables.
Given the multiformity of these performance figures, it is essential that investors have a widely diversified portfolio which would ensure there is not too much reliance on any given fund or sector that could damage the overall portfolio’s performance over the long-term, but still enable it to benefit from successful investment choices.
We are happy to offer advice on these issues, so would welcome you contacting us to hear our views and to help guide you through the decisions.
Professional advice is essential
When it comes to looking after our retirement planning and investments, vigilance and professional advice are essential. If you are wondering what to do, contact Robert Bruce Associates for individual assistance.
NOTHING IN THIS ARTICLE SHOULD BE SEEN AS GIVING INDIVIDUAL FINANCIAL ADVICE.