How PowerFunds Works
Helping You Find Better Funds. Easily.
Most people don’t realise that the biggest risk in long-term investing isn’t stock market ups and downs, it’s being stuck in poor-performing funds for years.
At PowerFunds, we help you make smarter fund choices. Our system ranks over 70,000 UK funds, including unit trusts, ETFs and investment trusts, so you can easily see which are worth holding, and which you might want to replace.
Most fund investors in Europe and North America – over 190 million people – are stuck in poorly performing funds. Often because they once made a quick choice, accepted something recommended by their bank, or simply don’t know how their funds compare to better alternatives. The result is a risk of losing large amounts in missed future returns.
At PowerFunds, we help you rise above the murky waters of investing and see the clear sky. Our independent rankings show you exactly how your funds are doing – and when it’s worth reviewing them – so you can stay on the right course.
We make it simple for you.
We analyse all funds on the market, regardless of who sells them.
We rank funds based on actual performance, not marketing.
We compare funds within the right category to ensure fair comparisons.
We update the rankings continuously, so you always get up-to-date information.
Everything is based on objective data, not opinions.
PowerFunds is completely independent. We evaluate all funds on the market, without regard to which bank or distributor sells them.
Our business model works just like travel comparison sites. They show which flights are best and cheapest, whether it’s KLM or British Airways. If you choose to click through and book, they receive compensation – but the search results are never affected.
In the same way, we may be paid by a distributor if you click through to buy a fund. But our rankings are never influenced by who you choose. It is completely independent, and this is at the very core of our mission. Our entire model is built on trust in an impartial ranking and insights into which funds are the best.
Our Simple, Two-Step Rating Process
We give every fund a rating from 1 to 10, based on:
1. How well the fund category is doing
(e.g. US Equity, UK Small Cap, Global Tech).
Categories with stronger long-term returns score higher.
2. How well the fund performs against the best index fund in its category.
Funds that beat the top index fund get higher scores.
Each fund gets a clear rating:
*Best – top performer in a top category
*Good – strong results compared to peers and index funds
*Ok – average, similar to index performance
*Bad – lagging behind others in its category
Everything is measured after fees, so you see the true return.
Built on Proven Investment Science
PowerFunds is based on "momentum investing", a well-researched strategy used by the world’s top investors and backed by decades of academic studies.
Put simply:
Funds that have done well in recent years are more likely to keep doing well, for a while.
This is a well-known effect in markets, caused by how real people invest (often reacting slowly or emotionally). PowerFunds helps you benefit from this effect by identifying strong funds.
The white papers below showcase how leading global institutions apply momentum investing strategies. Click the links to learn more.
University of Pennsylvania (Wharton)
Why Medium and Long-Term Performance Matters
We focus on 3-year and 5-year performance to filter out short-term noise. That’s because:
Long-term results give a clearer picture of quality.
Short-term performance is often just luck or market timing.
Most savers invest for the future—pensions, ISAs, or children—so a long-term lens makes sense.
What You Get
By using PowerFunds, you can:
*Check your current funds and see how they stack up.
*Get alerts when something changes.
*Discover top-rated funds across categories and platforms.
Why It Works
Because less than 1 in 10 active UK funds consistently beat the top index funds. But those that do can make a huge difference to your long-term wealth.
PowerFunds helps you:
*Cut through complexity
*Avoid underperformance
*Focus on what actually works
The effect of choosing the right focus for your funds, as well as the best funds within the category, can have a very significant impact on your long-term savings.
Past performance is no guarantee of future returns. The value of funds can both rise and fall, and it is not certain that you will get back the full amount you invested. Future returns are influenced by factors such as market developments, the skill of the fund manager, the fund’s risk level, and fees. Tax rules and any changes to them can also affect your returns.
The chart on the right is based on studies from leading institutions:
Morningstar Active/Passive Barometer (2025): https://www.morningstar.com/lp/active-passive-barometer
-SPIVA Global & Regional Scorecards (2024): https://www.spglobal.com/spdji/en/research-insights/spiva/
ESMA Costs & Performance Report (2025): https://www.esma.europa.eu/
Kevin Zhao (2024), Within-Style Investing: https://ssrn.com/abstract=4768145
Gorzon & von Nitzsch (2025), Behavioral Performance Attribution: https://link.springer.com/article/10.1007/s11408-025-00485-6
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Indian Retail Investors Study (2025): https://www.econjournals.com/index.php/ijefi/article/download/18542/8844/44282
Rohleder (2025), Do Investor Types Matter?: https://onlinelibrary.wiley.com/doi/full/10.1002/rfe.1221
Financial Times coverage of active vs passive: https://www.ft.com/
Contact us
Have questions? Want to learn more? Get in touch with us.
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