Some investors may have the expertise, the time and the confidence to pick their own stocks and shares for their portfolio. But for most people, investment funds represent a more manageable and flexible way to benefit from the potential performance of worldwide stock markets.
What are investment funds?
Investment fundsFund A fund is a 'collective' investment where a large number of investors pool their money into one 'pot', which is usually overseen by a fund manager. (also known as ‘collective investments’) make it easy for you to spread your portfolio across a number of different stocks and shares and other assets, without having to pick them individually.
The way it works is fairly straightforward. Under the supervision of a fund managerFund manager The professional company responsible for the day to day running of a fund., an investment fund works by pooling together money from many investors to invest in a selection of assets, such as shares, bonds or property. These are known as the ‘underlying assets’.
This way, by investing in a number of funds you can spread your investments more widely compared with investing directly in the assets they hold.
Which funds are right for you?
How do you choose the right investment funds to meet your needs?
Your adviser will take you through the processes of risk-profiling and asset allocation, and will iron out much of the uncertainty involved in fund selection.
To give you the greatest choice and flexibility, we offer around 1,000 investment funds on our platform and provide plenty of tools to help your financial adviser choose the most suitable investment spread for your needs.
Each investment fund has its own objective outlining what it aims to achieve for its investors and its own particular mix of assets. This helps you and your financial adviser to match the right fund, or funds, to your attitude to risk.