Investors looking to multi-asset not single asset funds

Prudential research shows a marked preference for multi-asset above single asset funds.

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The research, carried out by Immerse and Research Now over the first two weeks in March showed that of the 1,000 investors surveyed, 90% rated the opportunity to invest in multiple asset classes either appealing or very appealing.

More than two-thirds (69%) believe that the high risk and high reward aspect of single asset funds make them either unappealing (32%) or very unappealing (37%) when thet are considering the purchase of an investment product.

Prudential’s investment director, Andy Brown, said: “The research shows that access to several types of asset classes, proactive asset allocation and the flexibility to change their acceptable level of risk are features that the vast majority of customers rate positively. When all these things are considered, it points to increased demand for multi-asset products because of the flexibility and greater number of options they offer.” 

Eighty-three per cent indicated they want the ability to alter their risk profile, with a further 70% seeing the ability to smooth returns.

Other factors the survey found as important to investors are the provider’s brand name (89%), that external experts monitored fund managers’ performance (52%), security before returns (51%) and active above passive management (50%).

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