Which? warns investors off absolute return funds

Consumer group Which? has listed absolute return funds and task-based income protection cover among a list of 'financial products to avoid'.

Presenting the 13 products consumers should steer clear of, the organisation said absolute return funds, which aim to make investors a positive net return regardless of market conditions, were not achieving their aims. "The concept has turned out to be too good to be true in many cases," it said. It quoted FSA figures suggesting just over half of absolute return funds failed to make a positive return last year, while 33% failed to beat inflation in the year to 1 January 2012." Meanwhile, Which? said task-based income protection cover policies were "not good enough" as payout decisi...