When putting together an investment portfolio, there are a number of asset classes, or types of investments, that can be combined in different ways. The starting point is cash – and the aim of employing the other asset classes is to achieve a better return than could be achieved by leaving all of the investment on deposit.
PLACING YOUR PORTFOLIO INTO THE HANDS OF PROFESSIONAL MANAGERS
Some investors may choose to build their own portfolios, either by buying shares, bonds and other assets directly or by combining funds investing in each area. However, this can be a very time-consuming approach, and it may be difficult to keep abreast of developments in the markets whilst also researching all the funds on offer. For this reason, some investors may alternatively prefer to place their portfolio into the hands of professional managers.
Read our factsheet to find out more about putting together an investment portfolio.