What type of investor are you?

Investors can now very quickly determine their own personal investment profile and easily tap into the asset allocation expertise of the UK’s largest mutual fund manager, Fidelity International, with the launch of the “Investor Profile Tool” which can be found at fidelity.co.uk/direct/index.html.

Self-directed investors, who visit fidelity.co.uk, can now choose from eight different risk profiles to match their savings goals, time horizon and attitude to risk. Once they have selected their risk profile, the Investor Profile Tool then shows them a suggested optimum breakdown of assets, as well as a range of funds that may be appropriate on Fidelity FundsNetwork.

A ‘balanced’ investor, for example, is someone who wants to invest money for more than five years but is uncomfortable with the value of their investment fluctuating significantly over this time. The Tool will then suggest an asset allocation breakdown across money markets, equities, property and bonds to achieve moderate growth with low risk. Fidelity International has more than a decade’s experience in managing funds of funds which invest across multiple asset classes. Investors can take advantage of this expertise either through investing in Fidelity’s range of multi-manager funds, funds of funds or now through the use of the Investor Profile Tool to design their own portfolio.

However, a ‘speculative’ investor is likely to be one who wants to invest over a much longer time period and is happy to ride out short-term fluctuations in the pursuit of long-term capital growth. In this case, the Investor Profile Tool may suggest spreading the investment across property and shares, including some exposure to global emerging markets to boost the potential for higher returns. Again, this investor will then be offered the chance to choose from the full range of funds in those asset classes which are available through Fidelity FundsNetwork.

It’s also easy for investors to move between the different suggested asset allocation models so they can understand what happens if they select a less or more risky option.

Richard Wastcoat, UK Managing Director, Fidelity International commented: “By introducing the Investor Profile Tool, we are making our asset allocation expertise much more accessible to self-directed investors faced with the difficult decision of where to invest . This is a particular issue for investors who have built up sizeable portfolios of ISAs and PEPs without consciously reviewing their asset allocation or for those investors intending to save for retirement through a SIPP. Investors can make sure that their asset allocation reflects not only their investment aims but also matches their attitude to risk..”

Investors can now take advantage of Fidelity International's expertise in managing portfolios across multiple asset classes either by investing in Fidelity's range of fund of funds/multi-manager funds or by using the Investor Profile Tool to design their own personal portfolio.

Wastcoat adds: “We believe that asset allocation that fits with investment goals is key to investors avoiding disappointment. However, determining the right allocation can be daunting for many people. At Fidelity FundsNetwork, we have always designed our services with the aim of making investment easy for the consumer, and by introducing the Investor Profile Tool, we are now bringing Fidelity’s asset allocation expertise to everyone.”

The eight investor profiles according to Fidelity International are:

Cash
Cautious
Conservative
Balanced
Adventurous
Speculative
Cautious income
Adventurous income