Investors should consider reputation of fund manager

Potential investors should consider the proven track record of a fund’s manager when thinking about introductory offers.

Bestinvest, an independent financial advisor, emphasised that investors should be cautious when considering new products. Introductory offers can appear attractive but the group warns that this type of offer often appears with the launch of a fund and therefore does not allow the investor to be aware of the fund manager’s ‘track record‘.

Adrian Lowcock of Bestinvest said with Isas you get introductory offers when a product launches and the problem with new launches is that you might not be aware of the actual track record of the fund manager and have a good idea of its performance.

Mr Lowcock added that it is a good strategy to be slightly wary of new offers, investors should be absolutely certain about what they are investing in.

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