Trustnet Magazine Issue 21 September 2016 | Page 11

/ TRACKERS /

Investment
author Lars
Kroijer has
estimated that
difference to be
the equivalent
of around seven
Porsches

equity fund to contain bonds and
cash. Often an active manager will
take more risk by tilting towards
small companies, or play safe
by focusing on large caps. And
remember, your fund’s investment
style can drift over time. Without
realising it, your portfolio of active
funds could in fact be rather riskier
than it was when you started
investing.

3

THEY’RE THE
ULTIMATE DIVERSIFIER

The benefits of diversification in
both the growth phase and the
consolidation phase of saving
for retirement have been proved
beyond doubt. Not only does
staying diversified reduce your
exposure to certain types of risk,
it can also help you to generate
higher returns, especially over
long periods of time. Of course,
the most important thing is to
spread you