Absolute funds, global funds, cautious managed funds, smaller companies funds and more may not contain what their title suggests. A new article has exposed that many of the mentioned funds do not contain the types of companies they say they do within their name.
For example some smaller companies funds contain FTSE 100 companies, some global funds are dominated by just two or three countries and absolute return funds not delivering (now officially targeted absolute return funds).
In one example cited by the Telegraph, global funds such as the the BlackRock Global Equity fund can have nearly 60% invested into US equities alone.
This is good for any newcomers to investing in funds. Nobody should pick a fund based purely on its title and do as much research as possible.