Identifying good Funds.

Ryan_Futuristics

jimjames wrote: »

I agree that avoiding chasing the best performing fund from previous year can be a good strategy. It can also be a drag on portfolio when a fund like a US tracker continues to do well regardless of value measures.

It's much more comforting for me to be investing in a fund that is off it's peak that one that is constantly reaching new highs.

But you do need patience sometimes (and nerve quite often) ... I was even pondering putting 5% in a US equity tracker today - even at this stage, just in case they're gonna keep it rising by whatever means necessary

The US market tends to be quite timeable - really simple backtest with the 12 month moving average ... The UK doesn't seem to be quite as amiable - think it says a lot about investor behaviour

https://www.portfoliovisualizer.com/backtest-asset-class-allocation?s=y&TotalBond2=40&portfolio3=Custom&portfolio2=Stocks%2FBonds+%2860%2F40%29&portfolio1=Custom&Commodities1=13&annualOperation=0&TotalStockMarket3=100&TotalStockMarket2=60&initialAmount=10000&EmergingMarket1=26&endYear=2014&mode=2&SmallCapValue1=26&annualAdjustment=0&startYear=1972&rebalanceType=1&annualPercentage=0.0&LongTermBond1=5&TNotes1=10&REIT1=15&TBills1=5