Multi-Asset Investments Explained
Multi-Asset Investments are fastly becoming the choice for UK investors and are one of the most important investment options for Pensions and ISAs. In short, Multi-Asset Investments are a professionally managed investment solution that houses a wide scope of assets such as bonds and equities, but all in one investment. It is not uncommon for fund managers to buy units in other funds which is known as ‘multi-manager’ or ‘fund of funds’.
This type of investment can be highly complex and it is a good idea to hire a fund manager and take advantage of their access to information, skills and resources. They will usually spend their time researching a wide range of markets and global economies and assessing them for growth and investment opportunities. They will also actively buy and sell assets based on their strength and promise of producing a positive return. This results in the investor having someone in the driving seat who constantly has their ear to the wall and is in the know so there are no nasty surprises.
Why are Multi-Asset Investments so popular in the UK?
Growth in multi-asset investments has been huge over the past decade or so, but even more so in 2015 and 2016. Once considered an option only for serious investors,m they have now become mainstream and available to investors of all types.
They have also become more popular due to low savings rate on offer from building socities and banks, market volaility following the Brexit vote and a change in pension rules.
How do the benefits weigh up?
The main advantage of multi-asset investments is diversification. This spreads the risk and increases chances of yielding a profit. It also spreads the investment throughout multiple assets so if one goes bad the losses can be offset against the other good investments within the portfolio.
This type of invetsment suits not only those investors looking for a quick return, but it is also being used by many to supplement their pension pot.
The options for you as an investor
Once you have chosen the best fund manager for your personal goals, all you should decide is how you plan on managing risk and the style of invetments you are looking for.