Top-decile funds struggle to keep rank year on year

ratings

lack of consistency rife, with just four income funds staying in top half over five years

Only 2% of first-decile funds succeed in retaining their position year on year, research from Lipper and F&C has revealed. Meanwhile, funds that are tenth-decile one year have just a 1.28% chance of moving to the top decile the following year. Figures from Lipper Hindsight show investors who back last year's top funds are unlikely to see performance replicated, while buying poor portfolios, in the hope they will recover, rarely bears fruit. Based on bid to bid data for the year to 21 January 2006, in the UK All Companies sector there is just a 1.92% chance that a first-decile fund will ...