Best Funds 2021 – available now

Fri 11 Dec 2020

By Brian Dennehy

Access Level | public

Fund analysis


-It is designed for investors new to FundExpert, and new to a process for systematically selecting winning funds.

The link to download the guide is at the end of this short blog, and it is freely available to all.

Although designed for FundExpert newbies, it is still a very useful aide memoire for Gold Members, and a reminder for Bronze Members on what they are missing.

The 9 funds shown are three from of the three sectors where Dynamic Fund Ratings work particularly well – UK All Companies, UK Smaller Companies, and the Global fund sector.

Sorting your asset allocation around sectors like this is a very straightforward way to build a portfolio.  Remember asset allocation is the step before selecting funds.

For example, an investor with medium to high-risk sectors, could have a fixed split between the latter three sectors and the Bonkers Portfolio.  That would be 3 funds from each of the sectors, and 1 Bonkers fund – 10 funds in total – neat and manageable.

That could be 25% in each, or 30% in each sector, and 10% in Bonkers – still 10 funds in total, but just adjusted to your risk appetite.

Very straightforward, and hugely successful. Sometimes we might over-complicate when highly effective solutions like this are right in front of us.

Straightforward indeed.  Yet over the last year I mentioned that this year could be even more awkward than it already was, as we would need to adapt – for example, using Hidden Value-style funds at key turning points, not Dynamic Fund Ratings.

One way to identify such Hidden Value funds on the hoof, if they are not already in your buy list, is to observe which funds take the lead from that turning point, in this case Pfizer Monday.  We have done this for global funds, and compared the best with the Dynamic Global funds now being highlighted based on 6 months performance. 

Fascinating.  But, as I always say, follow the approach which works for you, not just your risk appetite but taking into account, for example, how much time and effort you can put into this.

If you are busy, perhaps stick to something like that portfolio structure set out above, and have a clear stop-loss strategy.  It is simpler than also trying to consider Hidden Value strategies, in this case at turning points.  You will miss out on some of the additional performance at that turning point, but in the long run you should still substantially outperform other strategies, such as solely buying index trackers.

DOWNLOAD HERE Best Funds 2021




Fund analysis


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