If the recent volatility in stockmarkets has demonstrated anything it is that holding a diversified portfolio of investments rather than relying on any one asset class for returns is usually a wise approach.
It is no wonder the popularity of multi-asset funds is soaring, with trade body the Investment Association reporting its Mixed Asset sectors have been taking in significant inflows.
Alastair Wainwright, fund market specialist at the Investment Association, says: "Mixed-asset funds ended 2017 with a bang after receiving £1.7bn in December - their highest net retail monthly inflow ever."
Multi-asset strategies can be used in client portfolios to diversify, help in the accumulation stage and, in some cases, to generate an income.
Peter Askew, chief executive of T Bailey Asset Management, describes them as "a fund which removes the decision as to which asset class may perform best and takes care of the asset allocation for you, which quantifies risk and aims to deliver an attractive above-inflation return".
This has made them seemingly an 'easy sell' to advisers and their clients, but knowing how to make the most of them in client portfolios is important.
No one multi-asset fund will have the same underlying investments, so undertaking some due diligence is essential, as are regular reviews of these strategies to ensure the manager is still doing what they said they would.
Plenty of managers have been issuing portfolio updates in light of the recent market fluctuations, for example.
This report suggests multi-asset strategies make sense against the economic backdrop globally but that advisers need to look under the bonnet in order to really understand what these funds are offering their clients.
This report qualifies for an indicative 30 minutes' worth of CPD.