Managing risk with multi-asset funds

Multi-asset funds invest in a range of assets, countries and market sectors, diversifying your investment across many different asset classes.

The idea is that these different asset classes behave at least partly independently of one another, so that a drop in one asset class will not put all your investment in danger. For example, when equities drop in price, this may be offset by a rise in prices of alternative assets.

It also means you can leave all the managing and monitoring to the fund managers, who will adjust the asset allocation of the fund depending on what is happening in the markets.

Funds which specialise or concentrate their investment in specific regions, sectors (such as emerging markets or smaller companies) or in a smaller number of shares can result in greater fluctuations in value. Funds that invest in a wide range of sectors or shares generally carry less risk as they are well diversified.

Prisma funds aim to generate long-term capital growth and target specific levels of volatility with returns appropriate to your calculated risk profile.


Managed funds invest across a range of different asset classes, namely Cash, Bonds and Equities.


Protected funds are aimed at investors who wish to invest in the stock market with limited risk. The risk is limited because - depending on the Protected fund you choose - the funds are guaranteed never to fall below either 70%, 80% or 90% of its highest ever unit price.


Absolute return investment funds aim to make you money regardless of whether the markets rise or fall. When the markets are rising rapidly, the Absolute Return fund is likely to increase in value at a slower rate than traditional equity funds, but they have the potential to deliver positive returns even when markets are falling.

Diversified assets funds provide exposure to diverse investments and therefore, reduced risk while maintaining the potential for strong returns. They give you the opportunity to gain exposure to more diversified assets than a typical managed fund.


BlackRock Investment Management (UK) Limited is authorised and regulated by the Financial Conduct Authority.

Warning: Past performance is not a reliable guide to future performance.
Warning: Benefits may be affected by changes in currency exchange rates.
Warning: The value of your investment may go down as well as up.
Warning: If you invest in these funds you may lose some or all of the money you invest.

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