When you are starting out for the first time, choosing where to invest can be a daunting task especially with investment risks. We therefore wanted to give you a few multi-asset fund ideas to help you get going and before you start it’s also important to understand some of the investment definitions and terms that are used in the investment arena.

You must remember that Strawberry Invest does not give personal financial advice and the following should not be construed as such. We aim to provide you with information to enable you to make your own investment decisions. We have therefore looked at the multi-asset investment funds available to you, and have conducted research through our research centre for investments by looking at quantitative measures (such as volatility, performance, fees, etc) and qualitative measures (such as the investment management team, outlook, strategy etc). Within the bounds of your own objectives and your attitude to risk (please refer to the section entitled ‘Constructing your Portfolio’ for more information on this) you may consider the following types of investment funds suitable for you. We would remind you that if you are unsure about the picking a suitable investment you should consult a professional independent financial adviser.

A multi-asset fund is one which holds more than one type of asset class. A professional fund manager decides which asset classes to include in the fund and in what proportions and then, within those asset classes, what specific investments to hold. The good thing is they tend to have limits as to how much exposure they will have to assets such as equities, and therefore you can get a relatively good idea of the potential risk of investment prior to buying the fund. They also provide instant diversification across both asset classes and individual securities (e.g. shares and bonds).

Both the accumulation (Acc) and income (Inc) unit classes are available through Strawberry for the following funds. An accumulating unit re-invests income paid out for you into additional fund units, the income units will pay the income out to your cash account within the platform.

The Aberdeen Managed Distribution fund invests in both shares (up to 60%) and bonds, and primarily focuses on the UK. Aberdeen’s Multi-Asset team look to grow capital and provide income, by actively managing a balance between risk and return. The team utilise some of Aberdeen’s own funds as well as direct investment into shares and bonds.

Who could it be right for?
– those wanting predominantly UK investment market exposure
– those with a moderate attitude to risk

Fund classes available through Strawberry:

  • Aberdeen Managed Distribution Fund I Acc
  • Aberdeen Managed Distribution Fund I Inc

Yield: 2.90%

The Invesco Perpetual Distribution fund invests in both shares (up to 40%) and bonds. The shares element is managed by Ciaran Mallon whilst the fixed interest element is managed by Paul Causer and Paul Read, all of whom are well-known Invesco Perpetual fund managers. The fund aims to achieve a balance of income and capital growth.

Who could it be right for?
– those wanting to invest mostly into the UK but with some international exposure
– those requiring a high level of income (if using the Inc unit class)
– those with a cautious-to-moderate attitude to risk

Fund classes available through Strawberry:

  • Invesco Perpetual Distribution Z Acc
  • Invesco Perpetual Distribution Z Inc

Yield: 4.58%

The Jupiter Distribution fund aims to provide investors with a monthly income as well as grow their capital. The fixed interest component accounts for around 70% of the fund and its focus is on generating income, while the equity component is focused on providing capital growth. The fund can invest into overseas equities and bonds if the managers cannot find enough companies in the UK market which match their desired criteria.

Who could it be right for?
– those requiring a relatively high level of monthly income (if using the Inc unit class)
– those with a cautious attitude-to-risk

Fund classes available through Strawberry:

  • Jupiter Distribution Fund I Acc
  • Jupiter Distribution Fund I Inc

Yield: 3.90%

Investec Cautious Managed invests in both shares (up to 60%) and bonds, and also has some commodity (mainly Gold) exposure. For the shares element, fund manager Alastair Mundy employs a contrarian approach to investing in equities which have underperformed the wider market. The fund focuses on protecting capital in weak market conditions, providing capital growth and providing a small amount of income. The fund has a global investment focus.

Who could it be right for?
– those wanting global investment exposure
– those not requiring a large amount of income
– those with a cautious-to-moderate attitude to risk

Fund classes available through Strawberry:

  • Investec Cautious Managed I Acc Net GBP
  • Investec Cautious Managed I Inc Net GBP

Yield: 1.06%

The Henderson Cautious Managed fund invests into both shares and bonds, with the former typically being around 40%-60% of the portfolio. The share component tends to consist of strong dividend paying UK companies, while the fixed income part is aimed at protecting investors’ capital in falling markets. Chris Burvill has been the fund’s main manager since its creation on 03/02/2003  and he has proven himself to be a great multi-asset fund manager.

Who could it be right for?
– those requiring a good level of income (if using the Inc unit class)
– those with a cautious-to-moderate attitude to risk

Fund classes available through Strawberry:

  • Henderson Cautious Managed I Acc
  • Henderson Cautious Managed I Inc

Yield: 3.50%