Go with the flow

A new and viable breed of funds is emerging: those that combine the benefits of active asset allocation with low-cost, index-tracking products, writes HSBC's Andy Clark.

In a world where charges are being increasingly scrutinised, a new and viable breed of fund is combining the benefits of asset allocation in a cost effective way by holding beta products such as ETFs and index trackers as the underlying investment. These asset allocated passive funds are interesting because, amid the debate over active versus passive funds, these combine the benefits of both. These new funds therefore bring two key advantages to the table: asset allocation and diversity, combined with good value underlying products. Benefits of diversification and asset allocation F...