Risk Targeted Funds are designed to align each individual investor’s attitude to risk with an appropriate investment proposition. An increase in the outsourcing of investment solutions has highlighted the appeal of a risk-based approach for many advisers.
Risk Targeted Funds have grown in popularity over the last few years. Typically, fund managers are tasked to beat a benchmark index or peer group. However, a risk-based approach differs from the traditional focus on relative return by observing specific risk boundaries.
The Academy of Funds includes a section that focuses on Risk Targeted Fund ranges. Funds are categorised into relevant peer groups and assessed on their ability to add value whilst remaining within their stated risk parameters. Risk Targeted fund ranges are assigned a Recommended rating.
To find out more about Square Mile's approach to researching risk targeted funds please click here.
The result of this work we hope is evident in our Academy of Funds. The Academy is free to access for Adviser firms and if you have not yet registered we would invite you to do so by clicking here.