We reveal how to choose
By ROSIE MURRAY-WEST, FINANCIAL MAIL ON SUNDAY
PUBLISHED: 21:51, 3 July 2021 | UPDATED: 14:20, 4 July 2021
Multi-asset funds are designed to make life easy for investors. They purport to offer a one stop ‘mini portfolio’ so that investors don’t have to construct one themselves…
HOW THE FUNDS PERFORM THROUGH THICK AND THIN
Multi-asset funds are designed to offer a perfect blend of investments that performs well in all market conditions.
They will contain some investments that perform well when the economy is growing, others that do better when it is running out of steam. That way, there should always be something in the portfolio that is turning a profit…
However, because multi-asset funds offer balance and protection against falling financial markets, they will never be the best performers when the market is roaring ahead…
WHY THE CHEAPEST FUND ISN’T ALWAYS THE BEST
The cheaper a multi-asset fund, the more of your returns you will be able to hold on to. But you may not want to go for the cheapest if it is not the best fund for you.
Darius McDermott, managing director at Chelsea Financial Services, says: ‘Cost is an important consideration, but we must emphasise that cheapest isn’t always best – it’s performance after charges that counts most.’
As well as multi-asset funds, there are also investment trusts with a multi-asset remit…
James Carthew, at fund data specialist QuotedData, likes three investment trusts with multi-asset portfolios: RIT Capital Partners, Personal Assets and Ruffer Investment Company.
For a focus on sustainability, James Carthew mentions a new trust: Schroder BSC Social Impact.
‘This is a relatively new and fairly small fund, which is targeting returns ahead of inflation from investments that are designed to have a positive benefit to society,’ he adds. ‘We’d like to see it grow over time.’
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