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Who should be investing in the Mixed sectors?

This article is part of
Guide to the Mixed Investment sectors

Mixed investment funds are suitable for two groups of people, according to Ben Yearsley, head of investment research at Charles Stanley Direct.

Firstly, those that simply want to buy and hold for the long term and take no real part in asset allocation or even monitoring of investment performance should consider Mixed Investment funds, he says.

Secondly, Mr Yearsley says those who want a “solid core” to their portfolio and maybe want to add “spice or more specialist sector funds” round the edge could find Mixed Investments meet their needs.

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“If you are simply buying and holding, as many pension investors do with this type of fund, then care needs to be taken in the first instance with choosing which to invest in.”

Gavin Haynes, managing director of Whitechurch Securities, opines that these funds are particularly suitable for first-time investors and those who do not have sufficient funds to build up a diversified portfolio of funds.

“They are popular with investors who want to gain some exposure to the stock market, but like the idea that the risk is tempered through diversifying this exposure with lower risk areas.

“Finally they can prove to be good long-term holdings to act as the core of a portfolio.”

Ken Rayner, director of Rayner Spencer Mills, said a wide range of clients can opt for Mixed Investment funds from the financially astute to the first time investor.

“There are no exclusions although experienced or professional investors will probably want to select their own asset and sector weightings.”

Ways to invest in Mixed Investments are also numerous.

Points of entry include platforms, fund supermarkets, investment bonds or direct to the fund manager through mutual funds, investment trusts or discretionary portfolio managers.

The two key ways to invest, according to Mr Haynes, are through multi-manager funds which provide a mix of underlying funds actively managed within the one fund, or through multi-asset funds where the manager invests directly in the underlying securities - avoiding potential ‘double charging’.