'Absolute returns' eaten by massive fees

Absolute return funds were the fourth most popular category of investment in June, according to the Investment Management Association. But should they be?

Absolute return funds were the fourth most popular category of investment in June, according to the Investment Management Association. But should they be?

Out of 14 such funds tracked by Trustnet.com, only six have made a positive return over the past 12 months. The performance of those that have been around more than a year is even worse: they're down 0.52%. Sure, that compares well to the 15.72% loss for the FTSE 100 over that period, but not to the positive return you could have achieved from a savings account. And it calls into question the claim made by many to be able to make money in falling, as well as rising, markets.

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