Investor Corner/Building and judging a portfolio

3.3 Evaluating Funds

How to read a factsheet properly, spot overlap and closet indexing, and judge whether a fund manager's track record is genuinely theirs to claim. A factsheet contains more than a return number: portfolio overlap, benchmark choice and a manager’s actual tenure all affect whether a fund’s track record means what it appears to. This section covers how to read past the headline figures to what is actually driving a fund’s performance.