Comparing Low and High Risk Funds
04 April 2023
Question by anonymous
Is it true that so called Low Risk funds perform worse than higher risk funds recently?
Answered by Boring Money
As quoted in our 'Money Clinic with Bestinvest' webinar:
It is true, markets behaved really weirdly last year and after that infamous mini budget felt pretty Maxi at the time.
So called bonds kind of had a very odd performance run. So it is true that things didn't behave as they weren't supposed to do so if you look at performance going back for so called Low Risk funds, you look at the numbers and think doesn't look very low risk to me. I think it was an aberration. I hope it was an aberration. Generally the high risk stuff we'd expect to bounce up and down a lot more. And the low risk stuff is supposed to behave a lot more like cash but as we saw last year there is that element of uncertainty with markets.