Investing in Funds
A convenient way to reduce potential volatility even further is to invest in a fund, sometimes called a ‘collective investment scheme’ or ‘investment fund’. Funds pool your money together with that of other investors to create a much bigger ‘pot’. This is then used to invest in a wider range of investments than an individual could achieve. It means that even if you only put in small amounts, your investment will still have the benefits of being widely diversified.
If investing through a fund is a fairly effortless way to diversify, multi-manager investing takes it one step further. Instead of investing in a fund which invests in certain types of asset classes such as shares or bonds, you invest in a fund which in turn invests in a range of other funds that hold a variety of asset classes. In this way you can participate in a wide range of assets and strategies through just one fund.
Aiming for higher returns with lower risk
Making use of all these ways to diversify can improve the relationship between risk and return, increasing the chances of achieving growth with lower levels of uncertainty. By carefully combining the different asset classes and investment products, a licensed investment professional can create a balanced portfolio that has the potential to fulfill your investment needs.
New investment opportunities
From assets such as shares and bonds to more complex investments such as absolute return funds, the choices facing investors today are both a challenge and an opportunity.
There are many different ways to reduce risk and enhance the possibility of good returns, and, by combining a wide range of investments, managers are creating a whole new generation of funds.
If you would like to explore your options further, talking to a licensed Financial Adviser can prove useful in clarifying your investment needs. As a trained and licensed professional, he or she will be able to offer advice and support in choosing the right funds for your requirements.
You may call at any Bank of Valletta Branch or Licensed Financial Intermediary to speak with a licensed Financial Adviser.
What we offer
Valletta Fund Management offers investors a vast range of Funds and Multi-Manager Funds which invest across all asset classes to include Cash, Bonds, Equity, Property and Absolute Return Funds. Whether you are interested in a fund that invests in a single asset class, one that skilfully combines a variety of assets, or something from our Multi-Manager range, we have investment solutions which aim to suit a range of needs and risk profile.