Investments in the Dog House

Bestinvest issue a list of “Dog Funds”. What is a Dog Fund? They are funds that underperform. The list is compiled twice a year. The key point is that £6.4bn is invested in these Dog Funds. The question is why? Why is so much capital still invested in these funds?

Why do investors fail to take action? What made them invest in these funds? It’s not if the companies who run these dog funds are shady or esoteric. Aberdeen Standard, Fidelity, UBS St James Place, Jupiter…these are big named companies. And these companies still charge you for being in a Dog Fund. You may not be invested in one of these Dog Funds. You may not even know you are invested in one of the Dog Funds but it’s possible you may end up in one of these Dog Funds, the next time a list is published!

It’s not unusual for retail investors to leave well alone. If they have advisers, they expect the advisers to flag up what needs to be changed. But if that was the case, why is £6.4bn still invested? Should the advisers have known better? It is possible, that £6.4bn is not advised but from DIY investors. There is no clear way of knowing. The question for investors is whether DIY or advised is to introduce a better framework for making decisions. Money invested is for your future. By taking more interest in how your money is invested will you increase the chances and staying clear of dog funds.

12.02.2023

Everything you want to know about investing….on an index card

Here’s the index card below. It went viral in 2013. Its written by Harold Pollack, a Chicago University professor. He was interviewed and metaphorically mentioned, “that the best [financial] advice for most people would fit on an index card”. Its based in the US but the principles remain the same wherever you live. There is a problem. It’s not the contents, its taking action. So many times in life we know what to do but simply do not follow through. It’s one of the reasons we do what we do is to ensure action is taken. On the back of...

01.02.2023

Wine, Art, Cars, Coins, Watches, Diamonds…

Perhaps the most traditional way of investing into real assets is to buy an investment property. Often investors feel comfortable buying property as its something they can understand. You can visit it. You can touch it. You can also buy other real assets. Art, Classic Cars and Wine are examples. Over the last 10 years, according to Knight Frank, classic cars have risen by 334% Wine is up 192% over 10 years. In the last 12 months, art is up 21%. Last year, a 1956 Aston Martin DBR1, raced by Sterling Moss, was auctioned by RM Sotherby’s for US...

21.02.2023

Making good financial decisions relies on basics

Investment costs. They are always more than you think they are. Simple arithmetic shows that the more you pay, the less you get. Wealth coaching helps you have a clearer picture of investment costs. Investment performance. Very few individuals have any clear strategy for measuring the performance of their portfolio. Without understanding what you are trying to achieve, it is impossible to be clear if you have been successful or not. Wealth coaching will help you understand more about performance measurement, which in turn can improve your decision making Investment risk. Most individuals tend to summarize their risk as low,...

£6.4bn invested in these Dog Funds

Bestinvest issue a list of “Dog Funds”. What is a Dog Fund? They are funds that underperform. The list is compiled twice a year. The key point is that £6.4bn is invested in these Dog Funds. The question is why? Why is so much capital still invested in these funds?

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