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DIY ‘Dog Funds’ ignore Bestinvest

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DIY ‘Dog Funds’ ignore Bestinvest

edited 13 August 2019 at 8:25PM in Savings & Investments
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igladiglad Forumite
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edited 13 August 2019 at 8:25PM in Savings & Investments
I’m posting this so that people don’t have to give their inside leg measurements to Bestinvest to obtain their dogs funds report who use it to hoover up contact details. If you go to the money observer fund performance tables and click on 1 or 3 yrs you’ll see who the poor performers are. Click back and you’ll find out who the best performers are.

You see quite a few dogs from a well known investment house, which used to employ a certain fund manager who is well and truly in the 'dog house' with his investors.

This is purely for those who might be curious, nothing more nothing less.

Replies

  • DrSynDrSyn Forumite
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    You should be able to avoid a dog fund, by simply choosing an fund or ETF that tracks a world index such as MCSI World or FTSE All World.
  • edited 14 August 2019 at 1:27AM
    igladiglad Forumite
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    edited 14 August 2019 at 1:27AM
    DrSyn wrote: »
    You should be able to avoid a dog fund, by simply choosing an fund or ETF that tracks a world index such as MCSI World or FTSE All World.

    That is probably true but there's an awful lot of ordinary folks money in badly performing funds.

    Also if you are a newbie how is one going to know about ETF's or indeed tracker funds?
  • AnotherJoeAnotherJoe Forumite
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    Isnt the point to invest in the dog funds, not avoid them?

    I thought that was a recognised investment strategy?
  • edited 14 August 2019 at 1:22AM
    igladiglad Forumite
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    edited 14 August 2019 at 1:22AM
    AnotherJoe wrote: »
    Isnt the point to invest in the dog funds, not avoid them?

    I thought that was a recognised investment strategy?

    Yes the 'long term hold strategy' which is popular on this forum, not by me though.
  • AnotherJoeAnotherJoe Forumite
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    The strategy isn't a long term hold.
    The idea is you hold for one year, then sell and reinvest in the next set of dogs.
    Never been bold enough to do it myself.
  • TBC15TBC15 Forumite
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    Bestinvest there’s a name from the past, are they still popular?
  • igladiglad Forumite
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    AnotherJoe wrote: »
    The strategy isn't a long term hold.
    The idea is you hold for one year, then sell and reinvest in the next set of dogs.
    Never been bold enough to do it myself.
    I guess you stop when all your money has gone, now that's quite a game!
  • bowlhead99bowlhead99 Forumite
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    iglad wrote: »
    AnotherJoe wrote: »
    Isnt the point to invest in the dog funds, not avoid them?

    I thought that was a recognised investment strategy?
    Yes the 'long term hold strategy' which is popular on this forum, not by me though.
    IIRC, your way of doing it is to sell the things that have gone down and invest in the things that have gone up.

    As the profits available from the portfolio from today will depend on what the funds do next, rather than what they just did in the period ended today, you might well do better following a 'contrarian' strategy rather than a 'momentum' strategy.

    Bestinvest themselves say:
    Spot the Dog lists the runts of the litter, but it’s not a list of funds that should automatically be sold. This is because we analyse past performance, which isn’t necessarily a guide to how a fund will perform in the future. There may be good reason to believe a down-and-out dog fund featured in the report will get back on its feet.

    For example, there are many different approaches to investing. Some funds adopt styles that are out of favour with the markets but might come back in soon. Some managers are suited to tougher times, others to rising markets.

    Then:
    iglad wrote: »
    Also if you are a newbie how is one going to know about ETF's or indeed tracker funds?
    If you are new to investing and don't know much about the stock market you have probably heard the names of the indexes because (e.g.) the FTSE100 and S&P500 have been mentioned on morning and evening TV and radio news and in daily newspapers since you were less than ten years old. Over the course of my life I have heard about 'the FTSE' or 'the S&P' thousands more times than I've read a news article about Baillie Gifford or Lindsell Train.

    If I go to any funds search list and start typing FTSE or S&P, my search results will almost exclusively be trackers, and certainly enough to help me realise that tracker funds and ETFs exist.
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