Choosing the right mix of asset classes
Generally speaking, if you’re willing to take more risk with the goal of achieving a higher level of return from your investment, your portfolio may hold more company shares (also referred to as equities).
As you grow older, your appetite for risk will probably decrease. The general rule of thumb used to be that the percentage of bonds you hold is likely to increase. However, a reasonable asset mix for you will also depend on other factors.
You may want to increase the percentage of bonds you hold if:
- your priority is to have a more secure investment, particularly in the run-up to retirement
- you’re comfortable with lower growth potential in order for your investment to have the potential to generate a more predictable income
No asset class is free from risk. Using the different characteristics of each asset class in a balanced portfolio can help to smooth fluctuations in performance and balance risk.
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 on this page should not be taken as a recommendation, advice or forecast.
The value of the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested.
M&G Planet+
Your financial choices help to shape the world we live in. The money you invest has the potential to fund something better: for people, for communities, and for the planet.
Multi asset
Multi-asset funds typically invest across a range of assets, thereby offering investors a mix of equities, fixed income securities, property, cash and currencies in a single portfolio.
Equities
Equities are shares of ownership in a company. Over the long term, investing in equities has the potential to generate higher returns than simply saving in a bank or building society account*, which could help you meet your investment objectives.
* Up to £85,000 of your money is secure in a bank or building society through the Financial Services Compensation Scheme, unlike stocks and shares or fixed income investments which are less secure.
Fixed income (bonds)
Fixed income securities, also known as bonds, potentially offer a more predictable income for investors when compared to riskier asset classes, such as equities, and could help to bring an important element of diversification to your investment portfolio.
Property
Investing in commercial property has the potential to generate income and capital growth as part of a balanced investment portfolio.
Convertibles
Convertibles are hybrid securities with some features similar to bonds and some to equities that could be used to diversify your portfolio.
Fund charges
Our charges vary between the funds that you can invest in, and then by the class of share you might hold. The more you invest in a fund, the lower your charges will be as a percentage of your investment.
Fund charges calculator
We believe it is important that you understand our charges when you invest with us. Our fund charges calculator tool can be used to help you see the amount of charges, in pounds and pence, you might expect to pay on the different funds in our range.
Share classes
For the majority of M&G funds, investors can choose between four share classes. Each share class has been designed with different investment needs in mind.
Annual Value Assessment
M&G’s purpose is to help people manage and grow their savings and investments. Delivering value is a key aspect of this. Our annual assessment of the value provided to investors in each of M&G’s UK-based funds – is designed to help you to see whether M&G’s charges are justified in the context of the overall service we deliver.
