Most investment groups have a whole range of funds you can choose between. It’s great marketing. You have so much choice. Every fund management group plays the same game. It means they can offer you numerous options, just like the choice of groceries you get from Asda, Sainsbury’s, Tesco, Waitrose etc…
You may employ someone to design your portfolio and choose the funds for you. This is typical with the big wealth managers as they provide restricted services. It also feels more bespoke to you. Someone designing and building your own portfolio. Wow.
But…yes there is a big one.
If the fund management company’s managed funds do not consistently outperform, you have a problem with any bespoke proposition using any of the funds available to you. Think about the process. You see a salesperson from the wealth manager, and they design a portfolio for you. Yet, the experts within the fund management group cannot choose funds as part of their managed range to consistently outperform? It makes no sense whatsoever.
It means that having a choice of all the funds the wealth manager offers is not delivering outperformance, it is simply to stop you from going elsewhere. It’s about marketing, not value outcomes.
The next time you talk to your wealth manager, compare the returns on your portfolio to the managed funds. If you can, check out other managed funds on the market to start your journey to achieve better outcomes.