Passive funds are a low-cost way to get exposure to a broad range of asset classes. They are particularly useful investments to hold in your individual savings account (Isa) as their low management fees, combined with the tax advantages of an Isa, help enhance your returns. They can also be a good option in markets where active managers struggle to beat the main indices, such as the US. And so-called ‘smart-beta’ exchange traded funds (ETFs) provide more tactical approaches within broad markets or mimic active investment styles – again at a lower cost than active funds. We have asked wealth advisers for 10 passive fund suggestions spanning five categories: equities for growth, equities for income, fixed income, smart beta and commodities.
EQUITIES FOR GROWTH