Single-asset or multi-manager funds are investment options for those who want a hands-off approach to investment.
What is a single-asset fund investment?
Single-asset fund investment is when an investment manager focuses on one security, asset, acquisition, or transaction. Please note investment managers are not providing financial advice. They are operated by a single investor or a group of investors working for the same company or affiliation.
Single asset fund investment offers potential for lucrative investment growth, but it does expose you to some risks due to a lack of diversification. This can be offset by other investments. Management fees are low due to the single-asset investment.
What is a multi-manager fund investment?
A multi-manager approach to investing is when capital is used to invest across different assets, industries, markets and even countries. Alternatively, the managers may invest in the same assets but use different investing styles as a way to diversify their strategy.
By diversifying investment in a multi-manager fund, the investor reduces risk and allows for some gains while protecting themselves from big losses. However, they will usually be subject to higher management fees due to multiple fund managers being involved.
Why use single or multi-asset investment
Single or multi-asset investment funds are an appealing investment opportunity for many people looking to grow their finances while acknowledging some risk. They offer a simplified and hands-off approach to investing, helping you to invest without costing time and effort.