Cautious managed funds beat equities

the funds protect investors from worst effects of the stock market slump but on average still posted a 3.67% loss over the past three years

Funds in the cautious managed sector have shielded investors from the worst ravages of the stock market over the last three years, but on average still posted a 3.67% loss. Billed by a number of providers as a viable alternative to with profits, cautious managed funds have been able to smooth returns through an equity/bond asset allocation split. The IMA requires cautious managed classified funds to be a maximum 60% invested in equities, with at least 50% of the portfolio held in sterling or euro-denominated assets and no limitations on UK exposure. Despite the sector's strong perform...