Summary of main asset classes that M&G invests in

Whatever investment you’re considering, you must first decide on the level of risk with which you’re comfortable and the level of return you’re looking for in the long term.

Spin-free guides from M&G

Our guides aim to help you gain a deeper understanding of your investment choices.

Spin-free guides

Spin-free guide to risk

An in-depth look at risk and how to help manage it

Spin-free guide to risk

Learning Zone

Educational guides and investment insights to help you on your investment journey.

Learning Zone Visit the Learning Zone

Invest with M&G

Make an investment with M&G Investments

Invest with M&G

Choosing the right mix of asset classes

Generally speaking, if you’re willing to take more risk with the goal of achieving a higher level of return from your investment, your portfolio may hold more company shares (also referred to as equities). 

As you grow older, your appetite for risk will probably decrease. The general rule of thumb used to be that the percentage of bonds you hold is likely to increase. However, a reasonable asset mix for you will also depend on other factors. 

You may want to increase the percentage of bonds you hold if:

  • your priority is to have a more secure investment, particularly in the run-up to retirement
  • you’re comfortable with lower growth potential in order for your investment to have the potential to generate a more predictable income

No asset class is free from risk. Using the different characteristics of each asset class in a balanced portfolio can help to smooth fluctuations in performance and balance risk.

We are unable to give financial advice. If you are unsure about the suitability of your investment, speak to your financial adviser. The views expressed on this page should not be taken as a recommendation, advice or forecast.

The value of investments will fluctuate, which will cause fund prices to fall as well as rise and you may not get back the original amount you invested.

Equities

Equities are shares of ownership in a company. Over the long term, investing in equities has the potential to generate higher returns than simply saving in a bank or building society account*, which could help you meet your investment objectives.

* Up to £85,000 of your money is secure in a bank or building society through the Financial Services Compensation Scheme, unlike stocks and shares or fixed income investments which are less secure.

More on equities

M&G equity funds

Fixed income

Fixed income securities, also known as bonds, potentially offer a more predictable income for investors when compared to riskier asset classes, such as equities, and could help to bring an important element of diversification to your investment portfolio.

More on fixed income

M&G fixed income funds

Property

Investing in commercial property has the potential to generate income and capital growth as part of a balanced investment portfolio.

More on property

M&G Property Portfolio

Multi asset

Multi-asset funds typically invest across a range of assets, thereby offering investors a mix of equities, fixed income securities, property, cash and currencies in a single portfolio.

More on multi asset

M&G multi asset funds

Convertibles

Convertibles are hybrid securities with some features similar to bonds and some to equities that could be used to diversify your portfolio.

More on convertibles

M&G Global Convertibles Fund

Need further information?