In this series of posts we're looking in detail at 7 of the most common mistakes that investors make. In this post, we'll be looking at mistake number 2, 'Choosing funds that own underperforming stocks' and mistake number 3, 'Buying at marketing tops'.
"This book could be the best investment you've ever made."
I’m proud to say that these were the words Lawrence Gosling, Founding Editor of Investment Week used to describe my brother Stephen’s latest hot off the press book, How to Make Money in ISAs and SIPPs.
Each month we like to make sure that the funds we own are acting right. In our opinion, as well as long-term performance being a key factor in fund selection, the short-term performance of a fund is very important once you own it. It’s vital because we’ve noticed that strong funds tend to get stronger and weak funds tend to get weaker.