Good, independent fund research can really make a difference to an investor's finances, helping to maximise returns over the long term.
However, while choosing the right fund can significantly boost returns, picking the wrong fund can have a devastating effect on your investments too. That's where the Chelsea RedZone comes in.
The Chelsea RedZone is statistical analysis which names and shames the worst-performing funds over three years. Each fund in the list has underperformed their sector average for three consecutive discrete years, and has not had a manager change or process change within the last 18 months.
The Chelsea DropZone lists the worst ten performing funds in the RedZone. They have underperformed their sector averages by the largest amount over the cumulative three-year period.
|Position||Fund||% underperformance from sector average**|
|1st||SF Webb Capital Smaller Companies Growth||-78%|
|2nd||HC FCM Salamanca Global Property 1||-50%|
|3rd||MFS Meridian Global Energy||-48%|
|4th||Fidelity Global Telecommunications||-42%|
|5th||MFM Techinvest Technology||-41%|
|6th||Guinness Alternative Energy||-39%|
|7th||Carmignac Portfolio Investissement||-33.71%|
|8th||Aberdeen Global Asian Smaller Companies||-27.62%|
|9th||F & C European Small Cap||-27%|
|10th||Dominion Global Trends Luxury Consumer||-26%|
*All data sourced from FEAnalytics.
Past performance is not a reliable indicator of future returns. Please note that the RedZone and DropZone do not constitute investment advice. If you are in any doubt as to the suitability of any investment you should seek professional advice. An appearance of any fund in these lists is not an indication they should be sold or switched.