How many funds?

mike88

Rollinghome wrote: »

Though I wouldn't disagree with the general sentiment I don't think it would be sensible to assume that all funds within a sector will be the same, most especially in sectors such as Abs Return or Flexible Investment.

Funds within the same sector can be very different and it's what they actually invest in and how that you should be looking at, not just what sector they happen to be in.

Invesco Perpetual High Income is about to be booted out of Equity Income into All companies. How would someone who doesn't want more than one fund in any sector deal with that? http://www.trustnet.com/News/498813/dampier-hits-out-at-crazy-invesco-perpetual-high-income-sector-change/3/1/

The reality is that fund has never been a true equity income fund even though it is in that sector. Historically the yield has been generated from growth and not dividends. I guess that fund will continue in the same way under its new manager.

Rollinghome

mike88 wrote: »

The reality is that fund has never been a true equity income fund even though it is in that sector. Historically the yield has been generated from growth and not dividends. I guess that fund will continue in the same way under its new manager.

That's pretty much what I was getting at Mike.

If someone bought it because it was in the equity income sector even though it was dissimilar to other funds in that sector, should they keep it and now buy another that's still in that sector and just because it's moved should they now assume it's same as another fund they might hold in the All companies sector?

Just because funds are in the same sector it shouldn't be assumed there can't be wide diversity between them. The assertion is made in that article “There are 2000 funds in the UK All Companies sector and you could subdivide them into six divisions”.