The secrets behind successful fund selection

All the hard work of deciding on strategic and tactical asset allocations can be undone by the fund selection process. One of the more common mistakes is believing that more funds means more diversification. In practice, and especially when looking at tactical decisions, this is rarely the case. I will be looking at active manager selection and the first hurdle is to reduce the ever growing universe to manageable proportions. With over 3,000 funds available to investors, it is impossible to research each individually. Therefore, a quantitative screen helps to highlight the most likely...