No doubt you’re familiar with the phrase ‘past performance is not a guide to future performance’. Although we see this every time we invest in a fund, it’s still all too easy for investors to fall into the habit of paying too much attention to past performance metrics. These might include a fund’s performance over one, three or five years in relation to its benchmark, or its performance compared with other funds in its sector.
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Managing Your Money
Are index trackers unsound?
Our reader is suspicious of advice to buy an index tracker
James Norrington