FUNDS YOU MUST DUMP NOW

TINKERING too much with your investments is never a good idea. The experts say you are likely to do more harm than good by chopping and changing your fund selections every year.

But keep an eye out for serial underperformers — and be ruthless when the time comes. Investment website Bestinvest publishes an annual list of ‘dog’ funds that are failing to keep up with their rivals.

The largest fund on its list this year is Aberdeen Asia Pacific Equity, which controls nearly £1.3 billion of savings and has grown by 5.5 pc over the past year. The UK-focused funds in its report include Aberdeen UK Equity, which has lost 1.52 pc of its value over the past year, and Aberdeen UK Equity Income, which is down 6.4 pc in that time.

Among the worst global funds were Templeton Growth, down 0.52 pc in a year, and UBS Global Enhanced Equity Income, which returned 2.53 pc in that time.

Generally speaking, experts say you should give fund managers at least three years to prove their mettle against their rivals, as all professional stock-pickers are prone to temporary dips in form.