Multi-asset Fund
What is a multi-asset fund?
A multi-asset fund holds different types of investment in one package. Typically a mix of shares and bonds, sometimes with property or commodities too.
Why use a multi-asset fund?
Simplicity. Instead of buying separate funds for shares and bonds and deciding how much to put in each, you buy one fund and let the manager handle the mix.
They’re often called “all-in-one” funds because they give you a complete portfolio in a single purchase.
What’s the mix?
It varies by fund. Some hold 80% shares and 20% bonds (higher risk, higher potential return). Others hold 20% shares and 80% bonds (lower risk, steadier returns). The fund name often tells you. Look for words like “adventurous”, “balanced”, or “cautious”.
Vanguard LifeStrategy and BlackRock MyMap are popular multi-asset fund ranges in the UK.
How much do they cost?
More than a single index fund, but not by much. Typical OCFs (yearly fees) are 0.20% to 0.50%. You’re paying for the convenience of having everything managed together.
Who are they good for?
Beginners who want a simple, diversified portfolio without choosing multiple funds. Also anyone who wants a “set and forget” approach. Pick a risk level and leave it alone.
Key points about multi-asset funds
- Shares and bonds in one fund. Sometimes other assets too
- Different risk levels available. From cautious to adventurous
- Simple, all-in-one investing. One fund, done
- Slightly higher fees than single index funds, but still low