£50bn of British savers’ money stuck in underperforming funds
By Daniela Esnerova 20
British savers have nearly £50bn stuck in consistently underperforming funds, new research shows.
A total of £49.6bn is currently held across 119 ‘dog’ funds, according to BestInvest’s latest Spot the Dog report.
This is down from 150 dog funds with combined assets of £54.4bn six-months ago, as vaccines hope sparked a recovery in some of the hardest hit parts of the market.
However, the latest scorecard still shows a 33 per cent increase in the number of underperforming funds compared to a year ago.
The report identifies consistently underperforming funds as ones which fail to beat their benchmark over consecutive 12-month periods by more than 5 per cent.