Ditch the fund managers and do it yourself

Just how important is choosing the right fund manager? Research has shown that often investors would be better off concentrating on which country they invest in, rather than with whom.

Just how important is it to choose the right fund manager? Despite the screeds of copy and internet space devoted to rating the people who manage our money, it seems investors would be far better off focusing on which country to invest in, rather than who to invest with.

For example, the best-performing sector last year was Europe, excluding the UK, while the worst was Japan. If you had bought into the best-performing Japanese fund SG's Japan Core Alpha, which fell 4.4% during the year you would be substantially worse off than if you'd bought the poorest European performer (Henderson's European Fund, which grew 11.8%). In fact, research by Ibbotson Associates covering 17 years of US markets indicates that 90% of investment return is down to being in the right place at the right time.

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