Which funds should you sell now?

Investors have more than £8.6bn rotting away in 'dog' funds which have underperformed for the past three years. Now could be the time for a rethink.

Investors have more than £8.6bn rotting away in "dog" funds that have underperformed their benchmark in each of the past three years, and that have fallen short of them by 10% or more. According to a new study from IFA Best Invest, 52 funds now feature on the list, up from 38 in January. And while past performance can't be used as a guide to how these funds will do in the future, investors "need to have a good reason for holding on to them," Justin Modray of Best Invest tells The Times. "Talented managers may have had a bad run, or bad managers been replaced by better ones," he says. "But overall, there are plenty of funds that are not worth keeping."

Top of the list is the £2.2bn Prudential UK Growth. It has failed to beat the FTSE All Share Index for eight of the past ten years. Henderson came second, despite the fact that it has made 12 fund management changes in the past two years. It continues to underperform. Bestinvest hopes that the study will make people think more carefully about where they have their money invested, especially since the number of "dog" funds is on

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