Choosing the fund type for you

The type of investment you choose will determine the degree of risk you face. Another factor is how your investment is managed. There are two main approaches to management; Active management and Passive management (Tracker funds). Both have their good points, and it doesn’t have to be an either/or choice. You can split your investments between active and passive management, just as you can between bonds and equities, to strike a good balance.

Actively managed funds – our experience works for you

Actively managed funds are run by a fund manager who, backed by expert research teams, buys and sells stocks on behalf of the fund’s investors in order to achieve the investment objective.

M&G’s fund managers are highly skilled specialists who don’t simply follow the latest investment fashions. Instead, they each have their own individual and rigorous approach, based on what is best for your investment over the long term.

Currently M&G fund managers look after nearly 334,000 investors and over £178 billion funds under management*, making M&G one of the largest active investors in the UK. In addition, we have some of the City’s most highly rated fund managers.

Tracker funds – a straightforward, low cost investment

Tracker funds are not actively managed by a fund manager. This means that:

The charges are much lower;
More of your money can be invested because the charges are lower;
Your returns track those of the market as a whole; and
Your returns may not be as high as that of an actively managed fund that seeks to outperform the market.

Index tracker funds have grown in popularity recently. These reflect the performance of a particular stock market index. When the tracked index rises, the value of your investment automatically increases with it.

*As at 30 June 2010

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Next steps: Contact us; Fund information; How to invest

Issued by M&G Securities Limited and M&G Financial Services Limited which are subsidiaries of M&G Limited. M&G Limited is incorporated and registered in England. Registered Office: Laurence Pountney Hill, London, EC4R 0HH. Registered in England No. 1048359. Registered for VAT, number GB235 3237 81. Both M&G Securities Limited and M&G Financial Services Limited are authorised and regulated by the Financial Services Authority and provide ISAs and other investments. M&G Securities Limited is registered on the FSA's register, No. 122057 (www.fsa.gov.uk/register). Registered Office Laurence Pountney Hill, London, EC4R 0HH. Registered in England No. 90776. M&G Financial Services Limited is registered on the FSA's register, No. 122058 (www.fsa.gov.uk/register). Registered Office Laurence Pountney Hill, London, EC4R 0HH. Registered in England No. 923891. Both companies are registered for VAT, number GB235 3237 81.