In This Chapter
Understanding the benefits of diversification
Looking at the fund manager’s role
Delving into fund-marketing techniques
Scrutinising performance figures
Questioning what fund managers say
Investing tax free
You can identify a fund-management advert from a mile away. It features a huge graph with the line heading to the stratosphere. It may even include a rocket heading for outer space, just in case you’re too dim to understand the concept. (Some fund managers push the point home even further by naming themselves after planets or stars.) And the warnings, of course, are listed in tiny print.
As a potential investor, you’re supposed to pay attention to the positive upward image and ignore or dismiss the negatives in small print as just regulatory noise that the Financial Conduct Authority (FCA) insists upon. And you won’t even get ...