Multi-Asset Funds vs. Single Assets – Which is Better for your Retirement?


With citizens across the globe struggling manfully to save for their retirements, it has never been more important to embrace the principles of investment and expert wealth management.

This type of approach will enable you to negate stagnating wages and the rising cost of living, which have combined to create a macroeconomic climate that makes it exceptionally to save through traditional methods.

In the article below, we’ll appraise your options in further detail, specifically by asking whether multi-asset funds or single assets represent your best opportunity to meet your financial objectives. Here are some of the key considerations:

  1. Cost

At first glance, it may appear as though as multi-asset funds are more expensive to invest in. After all, this type of fund is defined by housing a combination of assets including equity, cash or bonds, while its customised nature can generate higher costs for clients.

However, there are instances in which multi-asset funds can benefit from the pooled structure of the investment, creating a portfolio that is more cost-effective to run and manage. For example, this type of portfolio can often use ongoing cash-flows to rebalance funds efficiently, helping instances where your collection of asset have drifted from their target allocation.

Ultimately, the cost of a multi-asset fund will depend on its nature and structure, but it’s unwise to assume that this type of portfolio is automatically more expensive.

  • The Spread

One of the main advantages of multi-asset funds is that they offer a larger and more significant spread, even when dealing with relatively secure assets and marketplaces.

Make no mistake; the spread between the best and worst performing asset class within your fund can often be considerable, and actively managing this mix through industry experts such as Wellington Management Funds can seriously enhance returns.

Obviously, this type of advantage is not available when dealing with single asset investment, and it’s important to keep this in mind (particularly given the current economic and geopolitical climate).

  • Diversification

On a similar note, multi-asset funds are often favoured by investors due to their innate ability to create a diverse portfolio.

While this is undoubtedly true, it’s important to recognise that a multi-asset fund does not necessarily deliver diversification, particularly if it includes a number of similar options from a single marketplace.

However, there’s no doubt that multi-asset funds which include global bond, stock and property options are capable of delivering a diverse portfolio, and one that is likely to provide more consistent gains than a single asset.

The Last Word

Ultimately, determining whether to invest your money in a multi-asset fund or a single asset is a deeply personal decision, and one that will depend on your own background, goals and financial outlook.

As a general rule, however, there’s no doubt that multi-asset funds offer potential advantages to clients, particularly in terms of your spread, diversification and your ability to thrive in volatile market conditions.