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Dedicated followers of fashion have suffered another blow, this time at the hands of commodities funds.

Chasing the funds that stand at the top of best-buy tables has never been a sensible option, yet far too many investors and their financial advisers do just that year after year.

This can only be because it is far easier to sell an investment with proven returns rather than one that has potential. The problem with investing this way is, of course, that few investment funds have proved capable of delivering top returns year after year.

And, inevitably, a fund sitting at the top of the performance table has already had its good run, the underlying investment are probably close to full value and further rapid gains are unlikely.

So this year we saw commodities become flavour of the month. With the benefit of hindsight this was inevitable. Shares and property had let investors down and commodities were booming. So once again they piled in at the top.

And what do we find six months on? Investors who chose commodities in March have lost about a third of their money. For instance, a £1000 investment in JPM Natural Resources is now worth £633 according to researcher Morningstar.

Ironically, anyone who has been following fashion in the past few years probably has a fairly well-balanced portfolio. They will have an income fund or two, a property fund, some commodities, a growth fund - or possibly technology, some emerging markets and a corporate bond fund.

But while they may be in the right funds they will have invested in each at precisely the wrong time. Over the long term, these investments may well deliver but, as a result of this mis-timing, investors will probably have a third less money than they might have had if they had drip-fed into a balance of investments through the years.

It is a lesson that fund management firms and some advisers have yet to learn. If you go for the easy sale now then sooner or later your clients will become disillusioned.

They will cease to believe the mantra that over the long term stock market investment will nearly always beat cash savings, because the evidence of their own experiences will tell them otherwise.

We have been through an exceptionally tough period for investment and now, more than ever, good advice is needed.

It is time far more people in this industry concentrated on providing that advice rather than going for the quick and easy sale.

No time for fudge

It comes as no surprise that the Association of British Insurers has reservations about the retail distribution review. In particular, Stephen Haddrill, director general of the ABI, said: "The FSA is on the right track with its proposals for clearer payment structures for advisers, and increased professionalism. But it must rethink its ideas on who will be authorised to provide financial advice.

"We believe that all suitably professional and transparently remunerated advisers should be allowed to provide advice and give product recommendations - not just those who offer products from the whole market."

In other words, the ABI wants tied salesmen to be allowed to continue peddling second-rate, over-priced products under the guise of financial advice.

The FSA must remain strong on this. Consumers who want advice must know that they are getting independent advice from a qualified person capable of finding the most suitable product from the whole market.

Insurers have ruled the roost for far too long. They have manipulated sales levels and salesmen through commission. They have conned consumers with disguised charges and through misleading promises.

It is not to be trusted and it must not be allowed to dictate the outcome of the RDR.

It is only through embracing reform that financial advice will trusted by consumers. An ABI-style fudge must not be tolerated.

Joined up thinking

The Tax Incentivised Savings Association is calling on the government to help create a national savings strategy to integrate saving throughout consumers' lives.

You would have thought that after 11 years in charge Labour might have some sort of joined-up savings strategy. But in truth this is something no government has ever attempted.

Savings are for headlines - such as the launch of Peps, Tessas, Isas or child trust funds. Or they are for tax-raising - as seen in the raids on pensions, Peps and Isas.

Tisa has come up with five suggestions including the development of a workplace Isa into which employers could contribute. I can see that going down like a ton of bricks.

But one I really like is the transfer of Isa savings and investments to the surviving partner on the death of a spouse, without leaving the Isa wrapper. That would not only simplify things for widows but would provide a welcome boost to their incomes.

The short-term tax cost would be small for the size of headline achievable. So perhaps, just perhaps, this one has legs.

Email:t.hazell@gmail.com