Aggressive funds outstrip more passive blue chips

focused funds

A comparison of focus fund performance against blue chips shows that, as well as outperforming in market rallies, they also do better in more volatile conditions, although investors need to be aware they could see bigger drops in value

In recent years, a number of investment management houses have increased their product offering to include funds with a more aggressive or focused approach to investing. These funds have been classified as 'aggressive', 'concentrated', 'focused' and 'dynamic', whereby the fund manager pays little attention to the stock weightings in the index. The aim of these funds is to generate strong absolute returns through successful stock picking, regardless of the market environment. In many cases, the more aggressive, stock picking funds have outperformed the more traditional vehicles. Recently,...