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It’s all in the mix – multi-asset funds explained

Is a multi-asset fund for you? Explore what it is all about in simple terms.

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What exactly is a multi-asset fund?

If you put your money into a fund with a mix of investments, or ‘multi-asset’ fund, you are investing in different kinds of assets, held in one fund, with the aim of spreading your risk and enhancing your opportunities.

Multi-asset funds, alternatively referred to as balanced funds, usually contain a range of different investments,
such as:

Equities (company shares) – these are investments that tend to have more risk and are focused on achieving higher returns

Bonds, such as government and corporate bonds – usually a lower-risk investment designed to generate a regular income but with the potential to make price gains.

Money market securities – these are similar to cash held in an interest-paying account and are normally added to keep the fund liquid

Raw materials, such as gold or industrial metals, through specific investment instruments that mimic the price of the commodities – the materials market often moves in a different direction from equities and bonds, so a holding diversifies*, or widens, the range of investments in the fund

What are the potential advantages?

  • Putting your money into a multi-asset fund means you can invest in many different types of assets by buying into one fund.
  • You don’t need to monitor the market closely or choose individual equities or investments for your portfolio.
  • The managers of active multi-asset funds will make decisions for you – seeking to take advantage of opportunities or adapting to market conditions. For example, they may increase equity holdings when stock markets are attractively valued or allocate more to bonds when there is economic uncertainty.
  • Your money is spread across different types of investments, which may lower the risk. If one area of the market falls, another area may rise, or not fall as sharply. However as with all funds there is no guarantee.
  • You can choose a fund that aligns with how much risk you are comfortable to take.  

What about the risks?

  • When you invest your money, there is always the risk that it will fall in value.
  • We have designed our multi-asset funds to cover every kind of risk appetite – from low to high. Nevertheless it is important to consider that any investment may experience market volatility and fall in value in certain market conditions.
  • By investing in a multi-asset fund, you are seeking to spread your risk across different kinds of assets. They should rise and fall in value at different times – this means you may be protected against sharp downturns in one area, while you may also benefit less from sharp increases in another area.
   example of risk indicator level 2

Is a multi-asset fund for me?

If you want to diversify1 your investing across different types of assets, a multi-asset fund could potentially be a good solution.

Consider your timeframe and how much risk you want to take, then choose the multi-asset fund that you believe matches your goals. You can usually pay in regularly or make a one-off investment.

We’ve created a wide range of multi-asset funds
Discover our funds

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*Diversification does not guarantee a profit or protect against a loss

Unless otherwise stated, all information contained in this document is from Amundi Asset Management S.A.S. and is as of 8 May 2024. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi Asset Management S.A.S. and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results.

Date of first use: 1 July 2024

Doc ID: 3578154 

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