Investment funds are an excellent way to diversify your portfolio

Simon Hoffman, pensions and investments director, Friends First

A mantra of any good investment strategy is to ensure diversification across asset classes and individual stocks. Using investment funds is a good way of achieving this. Whatever you invest is ‘pooled’ with other investors. This increases the amount for investment, making it easier for the fund manager to diversify.

Some investors fall into the trap of assuming that the objective of fund managers is to make a return. This is not necessarily ...