Diversified funds
Get instant diversification for a small upfront investment

In an unpredictable world, diversification is still the single best way to reduce risk and smooth out investment returns. That's why a diversified managed fund is well worth considering, especially if you're just starting to build a portfolio.

A diversified fund spreads your investment across a range of different asset classes, such as cash, property or shares. So any underperformance in one asset class can be offset by gains in the others.

Even better, a multi-sector managed fund gives you instant diversification for a small upfront investment — often as little as $1,000 with a regular investment plan. So you can achieve the same level of diversification as a much larger portfolio while building wealth gradually over time.

Choosing the right fund for your goals

So which diversified fund is right for you? It all depends on your individual risk profile, including your investment timeframe and your appetite for risk.

If you're investing for a shorter term goal, like a home deposit, you may prefer a moderate or balanced fund, with 40% of your money in defensive assets like cash and fixed interest. But if you're still young and investing for retirement, then you may be able to take a more aggressive stance.

The aim is to choose a fund with an asset allocation that gives you the right balance between risk and return. In general, the higher the growth potential, the greater the risk.

Here are some typical asset allocations for diversified funds with different risk profiles:

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