11th Nov 2023
1 minute read

Managing Funds That Miss Their Investment Objectives

When a fund fails to meet its investment objectives, it can be a frustrating experience for investors who have entrusted their money to the fund. There are several reasons why a fund may fail to meet its objectives, including poor market conditions, ineffective management, or unexpected events that impact the performance of the fund’s holdings.

If you find yourself in a situation where a fund has failed to meet its investment objectives, there are several steps you can take to address the issue:

  • Review the fund's prospectus: The prospectus outlines the fund's investment objectives, risk profile, and other important information. Reviewing the prospectus can help you understand whether the fund has met its objectives and whether any changes have been made to the fund's strategy.
  • Speak with the fund manager: If you have concerns about the fund's performance, it may be helpful to speak with the fund manager directly. They may be able to provide insights into the reasons why the fund has underperformed and what steps they are taking to address the issue.
  • Consider switching to a different fund: If the fund consistently fails to meet its investment objectives, you may want to consider switching to a different fund that aligns better with your investment goals and risk tolerance.
  • Consult with a financial advisor: A financial advisor can help you review your investment portfolio and determine whether adjustments are needed to help you meet your long-term goals.
  • File a complaint: If you believe the fund has engaged in fraudulent or unethical behaviour, you may want to file a complaint with the FCA or another regulatory agency.

In conclusion, failure to meet a fund’s investment objectives can be a frustrating experience for investors, but there are steps you can take to address the issue. By reviewing the fund’s prospectus, speaking with the fund manager, considering switching to a different fund, consulting with a financial advisor, or filing a complaint, investors can take proactive steps to protect their investments and achieve their long-term goals.