Blow as savers told even 'cautious' funds too risky

The report by consumer group Which?, set to be published today, comes in the wake of the FSA's £7.7m fine on Barclays over the bank's inappropriate sale of risky funds, one of which was in the cautious managed sector, writes the Daily Mail. Under the rules of the IMA, which categorises funds, cautious managed funds can invest as much as 60% cent in equities, but need to have 30% or more in safer fixed-interest investments, such as gilts and cash. The Which? survey of investors in cautious managed funds found while most were happy to accept lower returns for reduced risk, the level of ...