Chasing returns: Are investors buying funds at the wrong time?

The reversal of fortunes for the IMA UK All Companies sector this year has again raised the question of whether investors' buying patterns are leaving them exposed to market corrections.

Research conducted by Investment Week has examined the performance of the best- and worst-selling Investment Management Association (IMA) sectors in the months following their move to the top (or bottom) of the sales charts. The numbers reveal several notable anomalies suggesting investors could be buying the wrong sectors at the wrong time. UK All Companies The most glaring discrepancy centres on UK equity funds. The UK All Companies sector has spent the last four years firmly out of favour with investors, having been the worst-seller for 2010, 2011, 2012 and 2013 among ISA buyers,...