What are multi-manager funds?
A multi-manager investment is a strategy that invests in numerous funds controlled by other asset managers. This combines the styles and expertise of several investment managers, with the aim of minimising risk and exposure in fluctuating market conditions.
Diversification
With some multi-manager funds, you are able to select the spread of your investments; in others, the spread is chosen for you. The key is that numerous investment managers are investing within those asset classes on your behalf, drawing on their own specialised expertise.
Through these investment managers, you are able to gain access to a broader range of asset options both locally and abroad, and achieve a much higher level of diversification than is possible via a traditional fund. This can allow your investment to target higher returns, while spreading and minimising your risk.
Learn more about types of investments
- What are managed investment funds?
- What are multi-manager funds?
- What is margin lending? What is investment gearing?
- What is a wrap account?
Did you know?
Managed funds, also known as managed investments or unit trusts, are an investment where you can pool your money with other investors. A specialist fund manager invests the money for you. The fund manager uses the fund's buying power to purchase a wide range of investments.
A wrap account combines or 'wraps' your investments into a single account. It's a one-stop shop where you can manage your investment portfolioand buy a broad range of investment shares, and managed funds at wholesale prices.