Funds, ETFs, Investment Trusts. Not sure where to start?
A fund pools money from lots of investors and is used to buy a range of assets – giving investors an instant stake in a number of holdings.
They are popular as they are a simple way to build diversity into investor portfolios.
Funds are also referred to as Unit Trusts, Mutual Funds or Open-ended investment companies (OEICs for short), and the assets are actively bought and sold by managers aiming to beat the market, to help you profit.
Funds are a simple way of accessing investments from leading companies around the world.
As you’ll have a share of several different asset classes, it is considered lower risk than buying shares in one or two companies as any change to one share can be offset by the performance of the others.
Because teams of professionals spend their time researching thousands of investments, you’ll typically pay more for an actively managed fund, but there’s potential for much higher returns.
It also means someone is tactically managing your investments, so when a region looks like it might be on the up, or a sector starts to suffer, the fund manager can decide to move your money around to expose you to growth or protect you from any losses.
You get to decide which funds to buy into based on your attitude to risk and how long you plan to invest for. With EQi, you can access three independently-researched fund selections:
How do you know where to start when there are more than 3,000 funds to choose from? Start with just three, aligned to your appetite for risk.
As you build your confidence over time and know what to look for, it helps to have more choice. See our top fund picks aligned to your investing goals and your appetite for risk.
We've added new fund lists for experienced investors, so whether you're looking to invest in Emerging Markets, US equities or ethical funds, we've got 50 to choose from.