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Is it time to boot underperforming Fundsmith Equity out of my Stocks and Shares ISA?

The article discusses the performance of Fundsmith Equity, a popular investment fund managed by Terry Smith, within the context of a Stocks and Shares ISA. Despite its historical success, Fundsmith Equity has underperformed in recent times, particularly in 2023, where it lagged behind the MSCI World Index. The fund's strategy focuses on high-quality, cash-generative businesses, but recent market trends favoring sectors like technology and AI, where Fundsmith has less exposure, have impacted its performance. The author debates whether to retain or sell the fund, considering factors like its long-term track record, the potential for recovery, and the diversification benefits it still offers. The article suggests that while there are reasons for concern, the fund's past performance and the manager's reputation might warrant giving it more time to recover, especially given its focus on long-term investment. However, the decision to keep or remove Fundsmith Equity from an ISA portfolio remains a personal one, influenced by individual investment goals and risk tolerance.

Read the Full MSN Article at:
[ https://www.msn.com/en-gb/money/top-stocks/is-it-time-to-boot-underperforming-fundsmith-equity-out-of-my-stocks-and-shares-isa/ar-AA1xvxo3 ]