5 Core Funds for Your Portfolio

Portfolio construction should start with some steady-eddy core funds that offer exposure to multiple assets that you can arrange more risky strategies around

Emma Wall 25 February, 2014 | 2:51PM
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Constructing a portfolio is like building a house - you must start with solid foundations. These are the assets that will grow at a steady pace; you're not looking for shoot-the-lights out performance as this often is accompanied by volatility.

Some investors prefer to blend passive funds at the core of their portfolio

The Investment Management Association sector formerly known as "cautious managed", now called Mixed Investment 20-60% Shares, is a good place to start looking. As the name suggests, these funds can invest between 20% and 60% of their portfolio in equities, with the remainder in bonds and cash. A minimum of 60% of the assets must be developed market listed, meaning the funds have a slow growth bias.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
HSBC FTSE 100 ETF7,023.97 GBP0.70Rating
Janus Henderson Cautious Mgd A Acc301.80 GBP0.37Rating
Jupiter Merlin Income Portfolio L Acc351.58 GBP-0.05Rating
Personal Assets Ord49,300.46 GBP0.31Rating
Scottish Mortgage Ord1,342.63 GBP0.99Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar

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