Know the mandate
A fund pools investments under a defined strategy. Read its objectives, eligible assets, benchmark where relevant, concentration limits and the discretion given to its manager.
Examine costs and access
Management fees, dealing charges, performance fees and underlying expenses can affect outcomes. Dealing frequency, redemption conditions and exceptional suspension rights should also be understood.
Compare on a consistent basis
Compare a fund’s strategy, holdings, liquidity and total costs alongside recent returns. Consider how each investment fits the agreed objectives and risk profile of your wider portfolio.