- We look at how to build a well-structured portfolio made up of stocks and funds
- Funds can be the core part, or used for less familiar sectors and asset classes
- Be mindful of overlaps
Individual stocks or funds? All investors face the question when they start and the answer tends to shape your attitude for many years to come. Stockpickers like a hands-on approach, fund investors prefer letting professional managers do the work.
“Fund investors tend to have a lower appetite for risk, and don’t feel they have either the time or inclination to research and monitor individual companies, so choose to delegate this to fund managers,” explains Jason Hollands, managing director at Bestinvest. “Investors who prefer to pick direct equities tend to be more confident and also enjoy reading up on companies. Investing becomes almost a hobby as well as a means to achieve financial goals.”