
Savings vs multi-asset
Savings accounts can offer 100% capital guarantee and ease of access. However, if interest rates are low, or are being outpaced by inflation, savers could be in a tight spot and have to make their money work harder to generate a real return. Holding or moving to cash will help avoid short-term stock market volatility, but it means you will lose out on any potential market gains over the long term. As you can see in the return example, multi-asset funds stack up well when it comes to returns over a long time period.
Discrete performance (%) | 01/05/2020 - 30/04/2021 |
01/05/2021 - 30/04/2022 |
01/05/2022 - 30/04/2023 |
01/05/2023 - 30/04/2024 |
01/05/2024 - 30/04/2025 |
---|---|---|---|---|---|
MA Portfolio - USD | 25.40 | -5.73 | -0.60 | 9.30 | 10.22 |
USTREAS Federal Funds | 0.08 | 0.11 | 3.24 | 5.50 | 5.00 |
Global multi-asset portfolio (USD) included Global bonds (35%): Bloomberg Global Aggregate. Global equities (50%): MSCI ACWI Property (10%) S&P Global Property. Alternatives (3%): HFRX GLE. Cash (2%) USTREAS Federal Funds. Rebased in US dollars where appropriate, i.e. all index returns are recalculated based on exchange rates to give returns for a dollar investor. Source: Morningstar Direct, 5 years to 30 April 2025.
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Savings AND multi-asset funds
We believe that over the long term, investing and saving can complement one another. For many people, this combination is potentially a way to achieve their long-term financial goals. And if you do decide to invest remember one thing above all: diversification can help spread the risk to your capital. Don’t put all your eggs in one basket.
Past performance is not a guide to future performance. The value of your investment and any income can go down as well as up and you may not get back what they originally invested. Fund charges that would be payable are not included and when included would have the effect of reducing the performance shown.
Using multi-asset funds to get started
Why Multi-Asset Investing Makes Sense Podcast
AXA IM Select’s Lorna Denny sat down with Colin Graham from Robeco, to provide a clearer idea of what multi-asset investing means and why it can make sense for investors to build a balanced portfolio.
The fourth in our Investment Basics podcast series, it's ideal for those starting out on their investing journey but should also prove useful for more experienced market participants. Happy listening!
Starter Guide to investing
When you’re new to investing, getting started can seem like an uphill struggle. That’s why we decided to create a starter pack to help demystify the process and provide an introduction to the basics.
Download guide