- Multi-asset funds and other 'core' options can do much of the heavy lifting in a portfolio
- We look at some of the options and main considerations
From Scottish Mortgage (SMT) to thematic exchange traded funds (ETFs), funds of a more specialist ilk have tended to hog the limelight in recent years. But looking at more prosaic options is also important when putting together a portfolio.
Many professional fund selectors advocate holding a ‘core’ fund – in other words, a well-diversified option that can form the bulk of a portfolio. As interim AJ Bell Investments managing director Ryan Hughes notes, having a core element making up a sizeable proportion of a portfolio creates “a strong long-term base that should have exposure to the major companies around the world, leaving a small element that can be used in other particular areas. By operating such an approach, investors should be able to avoid overtrading, instead leaving the core element to compound over the long term or deliver a specific objective such as income”.