Three simple fund ideas...
Choosing the right investments can make a huge difference to your savings and even your comfort in retirement. Put simply, the better your investments perform, the bigger your pot. But with so much choice, how do you know where to start?
To help you choose your own investments, our Pension Research Team has hand picked three simple investment ideas that could appeal to almost any type of investor. They include: an Adventurous fund, a Balanced fund, and a Conservative fund - the 'ABC Funds'.
Take them as they are, or mix and match - the choice is yours. Whatever your situation, we believe each of these funds is an excellent first step towards making your own investment decisions.
Before investing you should consider what type of investor you are and which fund may be best for your circumstances. If you are unsure of the suitability of any investment for your circumstances you should seek advice. Investments can fall in value as well as rise so you could get back less than you invest.
Simply click on the relevant button below to get started:
Rathbone Global Opportunities
What this fund is about
The fund invests almost completely in shares, including those of higher-risk smaller companies. The fund manager thinks exceptional companies are few and far between, so he only invests in a small selection. This gives each the potential to contribute significantly to performance, but it does increase risk. He looks for companies that can grow at a faster pace than others over the long run. At the moment the fund mainly invests in developed markets, such as the US, UK and Europe.
If the manager makes the right decisions, the fund could perform well - although because it is largely invested in shares it may be a bumpy ride, with setbacks along the way, so investors could get back less than they invest.
Baillie Gifford Managed
What this fund is about
Steven Hay and Iain McCombie are the lead fund managers. The fund invests between 40% and 85% of its value into shares which have historically delivered the highest returns - with more ups and downs along the way. Baillie Gifford uses a team-based approach, with different fund managers taking responsibility for selecting shares in each region (UK, Europe, US, Asia, emerging markets, and fixed income) with the support of their wider teams. The fund is prepared to vary exposure depending on the economic outlook. For example, during the ‘credit crunch’ of 2008, exposure to shares was reduced to around 70%, whilst exposure to cash and bonds (typically lower risk investments) was increased.
The fund has delivered strong returns over the long term and the team has a good record of outperforming similar funds, although past performance is not a guide to the future. Please note the fund currently has a holding in Hargreaves Lansdown PLC.
Troy Trojan
What this fund is about
This fund aims to produce attractive real returns over the long term with fewer ups and downs than the stock market, although like any investment the fund could still go down. In a normal savings account, you would receive an interest payment on any cash you hold. This fund aims to beat this rate by at least 4% each year, although of course, there are no guarantees. At its core, the fund invests in bonds - both with companies and the government - and shares. It's also flexible enough to invest in other areas, such as gold, currencies, and agricultural commodities like food, milk and grains.