Most investors have at least had money invested in a with profits fund at some point in time.

Almost everyone will have had a mixture of experiences with these funds.

In truth, we’re not big fans of them at Investor Profile. We prefer a clean, simple and low cost approach to investing. That’s just about everything a with profits fund is not.

Any fund that can have its value arbitrarily reduced at the drop of a hat surely cannot be the basis of a sound investment strategy.

Of course in the interests of regulatory requirements I should say that not all funds should be binned. Some are certainly worth keeping if they hold attractive bonus rates. Some may even have performed relatively well.

But what they do certainly represent is an old school approach to investing, and where ‘old school’ starts to appear in a sentence you know that ‘expensive’ isn’t far behind.

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Blog by Jaskarn Pawar

Jaskarn Pawar is an experienced and award winning Chartered and Certified Financial Planner. He advises people all over the UK on financial planning and wealth management issues to help them reach solutions to fit their personal needs. You can contact Jaskarn on 01604 211234 or by e-mail on