Good, independent fund research can really make a difference to an investor's finances, helping to maximise returns over the long term.
However, while choosing the right fund can significantly boost returns, picking the wrong fund can have a devastating effect on your investments too. That's where the Chelsea RedZone comes in.
The Chelsea RedZone is statistical analysis which names and shames the worst-performing funds over three years. Each fund in the list has underperformed their sector average for three consecutive discrete years, and has not had a manager change or process change within the last 18 months.
The Chelsea DropZone lists the worst ten performing funds in the RedZone. They have underperformed their sector averages by the largest amount over the cumulative three-year period.
|Position||Fund||% underperformance from sector average**|
|1st||HC FCM Salamanca Global Property 1||-69.03%|
|2nd||SF Webb Capital Smaller Companies Growth*||-53.17%|
|3rd||New Capital Asia Pacific Equity Income||-41.13%|
|4th||Natixis Loomis Sayles Emerging Debt & Currencies||-37.31%|
|5th||MFM Techinvest Technology||-33.71%|
|6th||JB BJ Local Emerging||-31.48%|
|7th||JB BJ Emerging Markets Inflation Linked||-29.45%|
|8th||MFS Meridian US Value||-28.88%|
|9th||MFS Meridian Emerging Markets Equity||-26.63%|
|10th||Sarasin Responsible Global Equity (Sterling Hedged)||-25.39%|
*Based on three-year cumulative performance. All data sourced from FEAnalytics.
Past performance is not a reliable indicator of future returns. Please note that the RedZone and DropZone do not constitute investment advice. If you are in any doubt as to the suitability of any investment you should seek professional advice. An appearance of any fund in these lists is not an indication they should be sold or switched.