What peer groups do you use for the Favourite funds list?
When researching the Favourite funds list, we create 'peer groups' to help us compare a passive fund with its peers, i.e. those in the same sector and of a similar size.
To be included in our peer groups, passive funds need to be GDP-denominated, and listed on the London Stock Exchange, if an ETF.
Passive funds also need to be in the same industry-defined peer group, according to The Investment Association categories or Morningstar Global Categories.
They also need to pass our passive selection criteria. We’ll only include passive funds with an AJ Bell-approved manager, and which have sufficient assets under management to enable large-scale investment. For fixed-income investments, we may also impose duration restrictions to make sure the peer group is relevant.
- How do funds (unit trust and OEICs) pay out income?
- Can I deal in collective investments?
- How do I know what price I will get for my fund deal?
- What is the difference between income and accumulation units?
- How do I find the key information about a fund?
- What charges do I pay for investing in funds (unit trusts and OEICs)?