Go-faster stripes: why you should beware the rush to risk-rate funds

RISK RATE RUSH

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Oliver Wallin, investment director at Octopus Investments, on why the rush to risk rate funds could lead to client disappointment.

When the 1997 film Titanic was re-released earlier this year in 3D format, critics at the time observed that the trend for retro-fitting 2D films with 3D technology was like putting ‘go-faster’ stripes on a car. It may, for those of a certain bent, make the vehicle look that little bit more impressive from the outside, but in reality it offers nothing in terms of improved performance. It certainly will not enhance the journey or get you to your end destination any quicker. Which in the case of Titanic could have been a downside for some. In the past few months new entrants into the ri...

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