Frequent the multitude of investment platforms and websites and you’ll note the perennial presence of a select band of open-ended funds, investment trusts and ETFs. The popularity of these funds reflects investors’ appetite to access the acumen of proven portfolio managers, gain exposure to hot sector trends or play the improving prospects of geographic territories. Yet blindly following the herd is never a sensible strategy, so investors need to do some homework to separate future winners from portfolios whose past glories could prove tough to repeat.

Issue: 18 Dec 2014 - Page 18

Find out how to deal online from £1.50 in a SIPP, ISA or Dealing account.