Adding Funds To a Portfolio

Equity funds are less volatile than pure equities--plain and simple

Morningstar.co.uk Editors 10 July, 2013 | 7:00AM
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In-the-know investors buy equities. Those less-in-the-know--or those who choose to know less--own funds. At least that's the rap when it comes to the equities versus funds issue.

But investing doesn't have to be a choice between investing directly in equities or indirectly through funds. Investors can--and many should--do both. The trick is determining how your portfolio can benefit most from each type of investment.

Today's lesson will cover how funds can improve an equity portfolio. We'll discuss how equities can embellis a fund portfolio in another another article.

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Morningstar.co.uk Editors  analyse and report on shares, funds, market developments and good investing practice for individual investors and their advisers in the UK.

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