Funds & Investment Trusts - how much research do you do?

[bitchstewie]

The last few months I've had the ISA bug as it's been time to make my savings do something useful.

I know I overthink but I've found it fascinating researching various funds and investment trusts whilst I try to work out allocations and who to invest into.

Now of course some people just choose an equities allocation and go buy a LifeStrategy/HSBC Global Strategy and I get that as it's what I was initially going to do.

Those of you that pick your own funds and investment trusts, how much time do you put into it?

For example do you simply go off historical performance, do you read the annual reports to try to get some kind of "feel" for the way the fund is run?

Just curious, no rights or wrongs

[bogie]

Not that much'; region, size/type of companies invested is, last 5 years performance and fees.

[FredClogs]

I do quite a lot. Bestinvest have good research articles as do HL, just be aware they obviously have a vested interest in selling some products over others. You have to know what you want to achieve before you go looking though, if you're just buying a fund or IT on its performance over the last 5 years you may well end up with something wholly inappropriate for whatever you're trying to achieve.

[jeff m2]

I research as if my life depends on it.....because it does.

Ideally you can get nearly all your needs from one fund family, if you can that makes it much easier when your diversification. has to be adjusted.
Manager tenure, manager background and current age.
Make sure you know the objectives of the fund, is it closely tied to an index or does it just use an index as a measure of its performance.
What is the manager allowed to do....and what can't he do.
Does he eat his own cooking. I personally don't over concern myself with this....some do.
How many analysts does he have, how long have the senior analyst been with him. Could they take over the fund tomorrow if needed?

When initially looking for a fund as a possible, I look at average performance since inception as the first metric. I know past performance etc etc but until they do a future performance one that's the one I use.

There are group of funds available in the US called "target dated" I first thought they were a marketing ploy, but they have performed very well.
They are funds of funds and are managed by committee using a global approach from within the family.
I don't use target dated funds, but would if I was younger.

[bitchstewie]

jeff m2 said:

I research as if my life depends on it.....because it does.

Pretty much my take on it too when time spent now can make such a big difference (good or bad) years down the road.