It is an accepted truth in investment that past performance is no guarantee of future performance. It is therefore surprising that many people, and some advisers, rely heavily on performance when recommending investment funds. This perception can often lead investors to choose funds that are 'best performers' at the time when an investment is to be made. Attractive though this may seem at the time, you need to remember that most investments are made for typically at least five or more years, so what are the chances that today's top performing funds will also be tomorrow's top performing funds?

In reality, the answer is 'pretty slim'. For example, of the top performing 50 funds of 5 years ago where are they now?

• In the top 50 - None!
• In the top 100 - None!
• In the top 250 - 2!
• In the top 500 - 5!

The lesson to be drawn is that fund selection by itself is a highly risky way to decide where to invest your money. This is why at Affinity we have developed a tried and trusted 5 steps to success toolbox that we use to implement a bespoke investment strategy for each client. To discuss our investment advice is simple contact us now to arrange a free initial consultation.