If your hard-earned savings are sitting around in underperforming funds, the likelihood is that you will have significantly less money in the future. In Spot the Dog
we highlight those funds with such bad performance that holding on to them could have a long-term detrimental impact on your portfolio. Our chart below shows what can happen.
Fund A is a dog fund and has underperformed its benchmark by 5% each year for the last three years. The benchmark has grown 7.5% each year for three years. The chart shows what would happen if this situation was allowed to continue over the long term.
Don’t let your hard-earned savings fester in dog funds. The impact on the amount of money you have in the future could be huge.