Multi manager funds, often referred to as 'fund of funds' aim to hand pick and invest in a portfolio of the best investment funds the market has to offer. This means that, rather than invest directly in shares, bonds and other securities, multi manager funds invest in several different investment funds, each run by their own particular fund manager and are believed to be the highest performing funds in the market.
A multi manager investment is a great way of avoiding the difficulties of making the right choice between the massive number of funds available and the huge amount of time and research this entails. In addition, by investing in a portfolio of funds you may find investment opportunities that otherwise may not have been available.
The drawback of multi manager funds are the higher levels of management fees incurred than conventional investment funds. This is due to the fact that management fees will include the fees charged by the funds it is investing in. Typically, you can expect an initial charge of seven per cent, and annual management fees of up to three per cent.
However, these fees will vary between multi manager investments and so doing your homework and searching the market for cheap multi manager funds is vital. Here's where myfinances.co.uk can help by comparing multi manager funds from across the market. Simply, fill in one quick form for a great multi manager fund quote.
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