The funds that promise the world but that are secretly losing you money

Even with positive returns, once inflation is accounted for you are effectively out of pocket

Investors have billions of pounds wasting away in funds that claim to make money every year in all conditions but have not even managed to beat inflation during the past five or 10 years.

Telegraph Money identified 34 portfolios that have lost investors money in real terms. All of them were absolute return funds, which aim to make a positive return every year regardless of the economic climate, even when markets are falling sharply.

But somehave failed miserably, losing money in nominal as well as real terms.

In the worst example over 10 years, theThreadneedle Absolute Return Bondfund lost investors 10.2pc, and 11.8pc during the past five years, as at the end of April. The worst performer…

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