Steady growth from cautious funds

Funds in the cautious managed sector have on average delivered positive returns over the one and three year periods to the end of June, hitting neither the highs with the tech boom nor the lows of its crash. The cautious managed classification is a diverse combination of fettered and unfettered fund of funds along with direct equity and bond funds, making comparisons at times spurious given the variation in the composition of individual portfolios. The sector's 60% ceiling on UK equity investments and focus on income targets means the portfolios seldom have the propensity to achieve c...