ISA Funds Underperforming - Is DirectTrader the Solution

Two in three of the bestselling Isa funds bought five years ago have let tens of thousands of investors down, with many losing up to half of their money.

Knoxville, FL (prHWY.com) March 2, 2013 - Two in three of the bestselling Isa funds bought five years ago have let tens of thousands of investors down, with many losing up to half of their money.


According to Fidelity Fundsnetwork, investors poured millions into high-profile funds offered by the likes of Artemis, Aviva, Jupiter, New Star and Schroders, yet five years on they have fallen on hard times.


With investors starting to focus their thoughts on where to put this year's Isa money, perhaps they should check whether they hold any of the Isas mentioned below, as it might be time to move on.


Nearly £27 billion is invested in underperforming funds, a sharp rise of £17.31 billion over the past six months.


Investment adviser Bestinvest's 'spot the dog' report found that £26.55 billion of UK retail investors' cash is invested in 113 'dog' funds, up from 44 since February.


One in every six funds is now considered a dog, according to Bestinvest. To qualify as a dog, a fund has to underperform its sector benchmark in each of the past three years and underperform its benchmark by at least 10% over the past three years cumulatively.


The global fund sector is responsible for the largest number of dog funds - 32 - while the North American sector houses 23 dog funds.


The worst performers


Once again, Scottish Widows and Scottish Widows Investment Partnership (SWIP) top the list as the fund management group with the most poorly-performing funds.


Dog assets have risen to £5.98 billion from £2.28 billion over the past six months, and two-thirds of its assets are now classed as underperforming. The group's UK, European and emerging markets funds have been panned by Bestinvest.


Schroders and Fidelity take second and third place, with £2.39 billion and £2.21 billion invested in poorly performing funds respectively. With regards to Schroders, the Schroder UK Mid 250 makes a sixth consecutive appearance as a dog fund, while at Fidelity the Fidelity American Fund, Fidelity International Fund, Fidelity MoneyBuilder Growth and Fidelity UK Growth continue to underperform.


M&G and BlackRock also house dog funds, with £2.02 billion and £1.39 billion of assets in these funds respectively.


Buyers' Guide - Investment Funds


Adrian Lowcock, senior investment adviser at Bestinvest, says investors pay around £390 million each year in charges to dog fund managers for these poorly performing funds.


He adds: "Investors simply can't afford to leave their precious savings languishing in dog funds and wait for the fund managers to do something about it.


"With markets trading in a range, it has never been more important for investors to take a close look at who is supposed to be managing their funds to make sure that their money is working as hard as possible for them."


A Solution to the Isa problem


The use of stock softwares has now become common in today's stock market industry. People are relying more than ever on these software programs to assess the market situation and to pick the stocks to invest in. The increase in demand of these softwares has seen a number of software companies coming up with their stock softwares fitted with amazing new tools that are not available in the existing stock softwares. One such software that has captured the attention of most of the traders is Direct Trader.

Mathematicians and their trading programs are increasingly taking the place of professional investors in financial centres across the world.


Trading floors were once the preserve of adrenalin-fuelled dealers aggressively executing the orders of brokers who relied on research, experience and gut instinct to decide where best to invest.


Long ago computers made dealers redundant, yet brokers and their ilk have remained the masters of the investment universe, free to buy and sell wherever they see fit.


But the last bastion of the old order is now under threat.


Investment decisions are no longer being made by financiers, but increasingly by PhD mathematicians and the immensely complex computer programs they devise.


Fundamental research and intuition are being usurped by algorithmic formulae. Quant trading is taking over the world's financial capitals.


DirectTrader has been able to encompass all of these ideas in creating a program that simplifies the trading industry, doing the hard work and mathematics for you. This easy to use program gives traders of all experience the ability to trade successfully on the markets and make an additional income.

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Tag Words: direct trader, directtrader, directtrader software

Categories: Finance

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