Using Best Buy Lists                


 Using Best Buy Lists                

All of the DIY and indeed other platforms today offer people their best buy lists, and personally I don’t think that they are worth the paper that they are written on.  I don’t doubt for a minute that there is an awful lot of work put into them and they will all be done very differently BUT I think that they are flawed from the start.

One organisation puts a lot of emphasis onto how cheap a fund is – whilst needless to say, others will only give that aspect lip service.    Most of them are also trying to guess how they WILL do in the next year or so – and that will be laden with assumptions, so what if that didn’t happen etc.   Before anyone uses these best buy list, they would need to have a good look at all the assumptions to see if they agree with them or not, before they started using them – and that kind of defeats the purpose I would say.

All of them are looking at the past and trying to guess what the future might be like- and that’s way too impossible I would say.  Who could have guessed about Brexit, the pandemic, about Russia invading Ukraine etc 

A lot of investors – especially new ones – won’t have much of a clue about where to invest and how much etc – and so it is only natural that they will look at best buy lists to see what the “experts” are doing, but this is not always valid.   I would say that there are very few experts in investing just because it changes so much and so rapidly.   My crystal ball would be spinning – that’s for sure. 

MAP doesn’t produce best buy lists, but what we look at is actual performances.    What we do before we use any funds is research consistent funds over the previous 5 years, and we do this quarterly, and then we look at what of those funds are still doing the job in the previous 3 months – and we do this weekly.  So what we end up with is a small list of funds for each risk category that are doing it long-term and also short-term, but, we don’t stop there, because we need to keep looking at funds over the short term i.e. every week – and so watch the trends of what funds are improving and what ones aren’t. 

There is only ONE GUARANTEE about investing – and that is, that everything changes – and that’s why our process – I believe- is the correct one, because we are looking out for all the changes – whilst best buy lists usually stay for a few months at least – but they don’t incorporate changes.

There is nothing to beat hard facts and that’s what MAP works on – facts.    We look at past performances and also the trends – and personally speaking I don’t think that you could do anything else other than this.   

The material is for general information only and does not constitute investment, tax, legal or other form of advice.  You should not rely on this information to make (or refrain from making) any decisions.  Links to external sites are for information only and do not constitute endorsement.  Always obtain independent professional advice for your own particular situation.  Money Advice & Planning Ltd is authorised and regulated by the Financial Conduct Authority.  For any enquiries, contact Andrew on 07957 836211 or enquiries@mapfinances.co.uk

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