How we identify the Top Funds

The premise underlying our statistical analysis, updated monthly, is that if a fund is highly rated, meaning that it has appeared in the Top-Ten within its sector over a number of months, there is a strong likelihood that this top-ranking performance can continue in future.

In identifying the TopFunds, there are two stages:

The objective statistical analysis, that establishes a short list, the monthly Top-Tens
The subjective analysis, taking into account a range of other matters that will play a significant part in future performance, which enables us to sift our recommendations from the short list.

The first stage, the short lists, are set out in appendix 2, based on the funds with most appearances in the Top-Tens over the last 12 months. The second stage, the sifting of the short list, is reflected in the funds selected within the DIY and Model Portfolio sections. The rest of this section provides more detail in the following sub-sections:

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