This insight looks at top-performing Irish Life pension funds ranked by 5-year CAGR performance.
A 5-year CAGR can be more useful than a 1-year return because it reduces the impact of short-term market movements. It does not remove risk, but it gives a clearer picture of how a fund has compounded over a longer period.
Over the period shown, Indexed Tech Y led the ranking with a 5-year CAGR of 17.2%. Techscope 2 G and Indexed Technology 1 G followed at 16.7%, while Techscope 3 G and Indexed Technology 7 G were close behind at 16.4%.
The ranking is heavily influenced by technology exposure. That is useful to know because strong returns from one sector can also come with higher concentration risk. A fund that performs very strongly in one period may not always suit a pension investor who wants broader diversification.
When comparing funds, investors should consider the return, risk level, fund category, volatility and whether the fund is concentrated in a particular sector or theme.
This insight is educational only. Portzo does not provide financial advice or personal recommendations.