As you can see in the types of investment fund section, there are many different funds available. This section explains what to look for when selecting one for your portfolio. It splits funds into two distinct types, active investments and passive investments, as there are different things to consider for each.

Before selecting the individual funds you’re going to use, it’s important to determine your attitude to investment risk, investment objectives and asset allocation. The constructing your portfolio section can help you to do this.

When selecting a fund, you should conduct your own analysis based on factors which are important to you, because there is no definitive answer as to which fund is best, and a big part of selection of investment funds is subjective by nature. The overriding aim should be to select funds which fit well with your appetite for risk and investment objective.

Picking an investment fund