Choosing your fund options

Whatever investment you’re considering, you must first decide on the level of risk you’re comfortable with taking and the level of return you’re looking for in the long term.

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.

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, fixed income and property 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, bonds and property. 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.

To help you easily identify our 'building block' funds you will see the following icon displayed on the fund pages of our building block funds. 

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.

To help you easily identify our stand-alone funds you will see the following icon displayed on our multi-asset fund pages.

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 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.


Investing in commercial property has the potential to generate income and capital growth as part of a balanced investment 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 three 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.

Get financial advice

If you are unsure about the suitability of any financial product or service we strongly recommend you speak with a financial adviser.

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