So. For example – we've used an Architas multi-asset fund to show you how having a broader spread of investments can make sense.
The illustration on the left compares a medium-risk multi-asset fund, Architas MA Active Intermediate Income, to investing in just UK shares over the last 5 years.
The fund is made up of 40% bonds and 53% shares, with the rest in property, cash and alternatives. Only 18% of the fund is UK shares. This sort of fund will typically have done better than just a collection of UK shares – the UK has not had a great run. So spreading your bets around will have paid off.
It's typically a good idea not to have all your money in one market or sector – and get a broad mix of regions and investments. (Of course this can also work the other way, for example tech stocks have soared this year – but it's a question of minimising risk in the absence of a crystal ball.)