Don't be swayed by the hype

A RECORD number of unit trust launches are due as fund managers try to distract attention from stagnant markets and persuade investors to hand over their cash. But are new funds anything more than gimmicks? Many people felt just that when Aberdeen Asset Management launched the UK's first pure technology fund in 1982 . Critics said it would never stand on its own two feet as a separate investment sector. How wrong they were.

Other launches have not been so successful. Any new fund's literature will paint an attractive picture but before trusting to the hype, it's worth turning to the internet to see if these claims can be met. Under the Money Makers section at www.thisismoney.co.uk you can get all the facts about an investment manager's existing funds to see if they are up to the challenge.

You can view and print out graphs comparing existing funds against suitable benchmarks and see what has happened to a 100 investment over the trust's life. Many new funds are run by the same managers of existing trusts, so it's worth checking how they have done before. Don't automatically buy the hype - turn to the net for some hard facts first.

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