Effect of poor investment performance

Having been approached by her bank manager, Mrs V took out a £10,000 investment bond with her bank.  Ten years on she would like to know if she made the right choice.
               
Looking back over the past five years at her investments, Mrs V would like to assess whether the decision to invest as recommended by her bank manager was the right one.  Although she has no real reason to complain, as the investment has grown, she feels a review would be appropriate and has further funds to invest.

The investment has grown to £19,671, an average annual rate of 7%, and Mrs V feels that this is acceptable for a medium risk investment.  However, on comparing with other funds in the same sector, it transpires that the average return was 9%, which would have produced a fund of £23,673.

The best performing fund would have grown much more than this, but Mrs V accepts that comparisons should be made with a sensible benchmark.  Her future investments are made through Ovation, and investments are monitored during an annual meeting, which compares the performance of the funds against a relevant benchmark, to ensure the areas in which the money is invested, and the specific funds chosen, remain relevant.

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