3 Multi-asset Funds for Hands-off Asset Allocation

This fund, investment trust and ETF show the breadth of options available to investors wanting to outsource their asset allocation

Holly Cook 20 March, 2015 | 4:14PM
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When we decide to buy a property to live in, we don’t just look for the cheapest house in the country or the property that’s been promoted the most on estate agents’ websites; instead, we identify our housing needs and restrict our search to properties that will meet those needs. Investing for a long-term goal such as one’s retirement is just the same. Deciding how to allocate your investment within various asset groups, regions and sectors is a crucial step of successful investing. It is a prerequisite to selecting individual securities for your portfolio: only once you’ve decided what proportion of your investment you want to have in, for example, the UK stocks that pay a reliable dividend, can you then seek securities that meet those criteria.

For investors who wish to put this job of asset allocation into the hands of a fund manager, there are various options across the fund spectrum, including multi-asset funds, lifecycle funds, and target-date funds. 

Homing in on multi-asset funds, these types of funds typically invest in equities, bonds, commodities and real estate, and manage the asset allocation according to specific goals or market conditions. Some multi-asset funds are fund of funds, in that they use equity funds and bond funds to build their portfolio, in addition to maybe cash, commodities and property investments. 

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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
Rating
Liontrust Global Alpha A Acc GBP9.85 GBP-0.01Rating
Personal Assets Ord49,405.99 GBP-1.09Rating

About Author

Holly Cook

Holly Cook  is Manager, Morningstar EMEA Websites