‘If you want to make big returns go for global growth’
Global growth funds hold the key to excellent investment returns, according to research from investment data analyst Moneyspider.com.
However, rather than the big investment houses leading the way, it is the small boutique funds that are posting the best returns.
“The dramatic imbalance in returns shows the importance of not automatically putting your trust in the big name fund management houses without investigating alternatives,” said Moneyspider.com managing director, Bill Ross.
He cited the example of the Neptune Global Equity fund for the past five years – a £5,000 investment in the fund would have made a profit of £8,071, a gain of more than 160% over the stated period.
Ross said: “Yet the same amount invested in the bottom of the pile – the Scottish Widows’ Global Growth Fund – would have produced a derisory profit of just £662, far less than if the money had been held in an ordinary savings account.”
He also said that the global growth sector’s popularity looks set to continue. It was the most popular product category for worldwide pension fund manager searches in 2006 and accounted for 31% of the total $92.3bn assets held in global stock markets.