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||Close FTSE techMARK||-47.87%|
|2nd||Candriam SRI Equity Emerging Markets||-42.49%|
|3rd||MFS Meridian Global Energy||-39.99%|
|4th||Quilter Investors UK Equity Income II||-39.40%|
|5th||Comgest Growth Gem Promising Companies^||-31.96%|
|6th||Guinness Alternative Energy||-31.71%|
|7th||GAM Star China Equity||-29.37%|
|8th||FP Argonaut European Alpha||-26.51%|
|9th||Jupiter UK Growth||-26.47%|
|10th||LF Woodford Equity Income||-25.33%|
*All data sourced from FEAnalytics, 01/01/19
^ The history of this unit/share class has been extended, at FE's discretion, to give a sense of a longer track record of the fund as a whole.
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.