Our Multi-Index funds combine a mixture of index funds with investments in company shares, bonds and commercial property. So what are the key benefits, and how can they help?
How can mixed investments help you, in an uncertain world
During times of political change and economic uncertainty, diversification has become a key watchword for investors.
Diversifying your investments is the opposite of putting all your eggs in one basket. By spreading money across different investment types, regions and sectors, the thinking is that if one experiences a downturn, the others should help balance it out.
Diversification is an important concept, since it can help mitigate risk and potentially limit losses. The good news is that it can be achieved relatively easily.
The mix of shares, bonds and commercial property these funds are made up from drives their level of risk and potential reward.
They are also reviewed, managed and adjusted on an on-going basis by our team of investment experts, to ensure they remain within the level of risk you select.
So, instead of having to take the trouble to spread money across different investments yourself, they give you easy access to a wide variety of geographical regions and sectors, including international markets – all through a single gateway.
What benefits do they offer investors?
With investment decisions made by a professional management team, they have become a popular and flexible way for busy investors to diversify their approach to investing.
Growth and income opportunities
While they’re tailored to different risk appetites, they also give you the chance to achieve capital growth, income, or a combination of the two.
Making diversification easy
They offer a quick and easy way to create a balanced mix of investments that can help prevent your money from becoming overly exposed to the price movements in a specific sector or geographical region.
Helping tackling market volatility
Since all buying and selling decisions are made by a dedicated management team, the mix of different assets held in a fund can be quickly adapted to changing external economic conditions.
Our ready-made options
It is important when selecting any investments to choose something with a level of risk you’re comfortable with.
If a mixed investment approach is of interest, check out our ‘We do it for you’ fund page, which has a host of helpful interactive features (including two videos) to help in selecting the right option for you.
Remember our ready-made investment options will stay true to your chosen level of risk, regardless of what happens to external markets.
The value of your investment and any income from it may fall as well as rise. You may get back less than you invest. Changes in exchange rates between currencies may cause the value of an investment and the level of any income to rise or fall.
These funds are sensitive to interest rate changes. An increase in medium to long term interest rates is likely to reduce the value of your investments.
Although there is no fixed term you should consider stocks and shares ISAs and unit trust investments to be medium to long term, ideally five years or more.