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Fully-managed portfolios with the best and worst 5-year returns

By Antonia Medlicott

  • Published: June 12, 2024
  • Edited by: Clare West
  • Last Update: 1 month ago
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Don’t assume that because you have paid professionals to manage your portfolio for you, you will experience favourable returns. Here at Investing Insiders we’ve done all the analysis for you, so you can identify the platforms that are missing the mark.

The past performance leader board


Languishing at the bottom


What is a fully managed portfolio?


In order to successfully invest in line with your risk profile, you need to create a diversified portfolio with a range of assets across different sectors and geographies.

This isn’t always easy to achieve, and limited knowledge and experience can make the task daunting for first-time investors.

A fully managed portfolio is created and supervised by a team of experts on your behalf. It aims to help investors reach their investment goals in line with their risk profile in a certain time frame.

Interpreting this data


It is vital that you consider risk when investing in a managed portfolio. The top-performing portfolio in this data set is the Four Largest Tech Giants from eToro. While this has clearly done well over the past 5-years, there are only 4 stocks in this entire portfolio, and it can therefore not be considered diversified.

Placing all your investment capital in this portfolio would be a risky strategy, and you should be prepared to lose some or all of your original investment.

Therefore, this portfolio should only be used as part of a more diversified strategy.

That being said, it is clear from the data that investors should not assume that investing in a cautious or conservative portfolio will guarantee positive returns, however small. In fact, our analysis suggests that this approach is more likely to result in negative returns.

How should investors proceed?


When we compared these results to a simple index or tracker fund, we found that in most cases, investors would have experienced better returns and less cost investing in a simple tracker fund.

However, for investors with limited experience who are lacking in confidence, these fully managed portfolios can still represent a good option. It is vital to consider that all the top 10 performing portfolios are considered high-risk. However, there is nothing to stop investors from investing in more than one portfolio. This strategy could glean better returns over time while still managing exposure to risk.

Please remember that none of this should be considered investment advice. We are simply stating the facts and investors should still conduct their own research before risking any of their funds.