Renewed interest in multi-asset funds

Multi-asset funds are enjoying a new vogue. Amid worldwide geopolitical instability, a volatile market and weaker growth, many investors are becoming more risk aware. To manage risk and protect capital whilst simultaneously exploring new growth opportunities, an increasing number of investors are turning to these types of funds.

Multi-asset funds appeal to many investors because they allow them to diversify their portfolios. They invest in a wide variety of asset classes, including but not limited to bonds, equities, and even property and commodities.

A NEW BEST-SELLER

Recent figures show an impressive upswing in the amount of new money being channelled into existing funds and a number of new funds have launched this year as well. According to investment researcher Morningstar, there are currently 1,027 UK-domiciled multi-asset funds available to UK investors. And, with net retail sales of £7.9 billion, multi-asset was the best-selling asset class of 2018, the Investment Association has reported.

With an ever-increasing number of funds out there to choose from, investors would be wise to seek professional advice.