85. Investing Smarter, not Harder: WTF is a multi asset fund?

Women & Money Cafe

Welcome to Women & Money Cafe, where we explore all things finance through the lens of women. In today's solo episode, we'll be diving into the topic of multi-asset funds.
First, let's talk about what a multi-asset fund actually is. As the name suggests, it's a fund that includes multiple assets, such as stocks and shares, bonds, property and commodities, blended together to create different levels of portfolio risk. By investing in multiple assets, we can help to reduce risk and achieve more predictable returns.
So why would you invest in multi-asset funds? Well, for starters, they're designed to help manage risk and provide broad diversification. A multi-asset fund contains a variety of assets that are managed by a fund manager, who is responsible for keeping the risk level appropriate by buying and selling different assets as needed. This means that investors only need to determine their desired risk level and buy the appropriate fund while the fund manager takes care of the rest.
When investing in a multi-asset fund, there are two types to consider. The first is active, where a fund manager chooses investments daily and aims to outperform the market index. Alternatively, there are passive multi-asset funds, which have lower management fees and buy tracking funds to follow the index.
When choosing a multi-asset fund there are different factors to consider such as an existing pension or starting with an ISA. It's important to look out for keywords such as managed, portfolio, active, passive, cautious, moderate, balanced, or adventurous.
And while stocks and shares typically make the most money over time, other assets such as bonds, guilts, and property, are included in the fund to help balance risk and volatility. Asset allocation refers to deciding how much of the fund is allocated to each asset, with stocks and shares being the asset class with the greatest impact on the level of risk and volatility.
Ultimately, multi-asset funds are a great option for anyone looking to manage risk and achieve diversified returns while investing. By letting a fund manager handle the assets and making allocations based on your desired risk levels, it's a low-maintenance option that can save you time and stress in the long run.
That's it for this solo episode of Women & Money Cafe. Be sure to tune in next week as we'll be discussing a brand new topic with a special guest. As always, thanks for listening and see you next time!
YOUR HOST

Julie Flynn is an experienced independent financial adviser and financial coach. Justice and equality drive Julie. Which is why she’s spent years studying and researching how stress affects our financial decision making.

Julie is best known for her work with women who have lost their partner and coaching financial services business who want to implement fair and transparent charges.
Ebb & Flow Financial Coaching | Bree Wealth & Tax | Instagram
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