Investment
Is your investment still right for you?
4 min read 29 May 25
Please see our glossary for information on the financial terms used in this article.
At M&G Investments, we want to make sure our customers are invested in the right funds for them. It may be that you’re happy the funds you’re invested in are suitable for your needs already.
When you first invested, you probably weighed up all your options, carefully considered how much risk you were willing to take and chose a fund, or funds appropriate for your circumstances at that time. You may even have taken financial advice.
However, we know things can change. So, what was the right fund for you when you first invested may no longer be suitable today.
What do you need to do
One principle that will never change however, is the importance of regularly reviewing your investments.
If you haven’t reviewed your M&G funds in a while, we’d like to ask you to take a look at all your investments together and consider if they’re still right for you. We know there’s no easy answer. At M&G, understanding is at the heart of what we do. Our helpful guides will help you broaden your investment knowledge and get a deeper understanding of your investment choices.
How to review your investment
When you’re reviewing your M&G investments, it’s important to consider any other investments you hold with other providers too. For example, if you only hold one fund, rated as higher risk with us, (possibly only invested in equities) but also hold a number of lower risk funds elsewhere, (maybe bonds or multi-asset funds) then you’ve already taken steps to spreading your investment risk.
However, if you’re unsure whether the level of risk you’re taking is right for you, asking yourself the following questions could also help you decide:
- Are you more or less comfortable with risk than when you first invested?
- Considering all your investments together, do you have the right mix of lower and higher risk investments?
- If you have a financial adviser, have you discussed your investments with them recently?
- Have your plans for your investment changed?
- Have your financial circumstances changed?
- Have your investments performed in line with what you needed them to?
- When are you planning to take your money?
- Are you planning to leave any or all of your investments to someone else?
Of course, these are just examples – there may be many other areas to consider that are more important for you and relevant to your circumstances.
Building block funds vs stand-alone funds
To further help you decide which funds are appropriate for your needs you should consider whether you would prefer investing in our building block funds or stand-alone funds.
Building block funds
Funds within the equities and fixed income asset classes are what we consider 'building block' funds. Funds within these asset classes should be held as part of a wider investment portfolio. In other terms you should consider creating a ‘diversified portfolio’, where an investment portfolio is spread across a blend of asset classes like equities and bonds. As different asset types are likely to perform well at different times and in different market conditions, investing in a good mix means you won't have ‘all your eggs in one basket’ and could mean more consistent returns over the long term too.
Stand-alone funds
Our multi-asset funds are what we class as 'stand-alone' funds. You can hold these funds individually, and not necessarily as part of a wider investment portfolio. Multi-asset funds spread your money across different asset types so you don't have ‘all your eggs in one basket’, offering you an off-the-shelf solution if you’re looking for diversification in one investment.
We know choosing the right fund isn’t easy. So, you may want to speak to a financial adviser to get help with this important decision. Unfortunately we are unable to provide advice, so if you don’t have an adviser already, we can help you find one.
The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. We are unable to give financial advice. If you are unsure about the suitability of your investment, speak to your financial adviser. The views expressed here should not be taken as a recommendation, advice or forecast.