The traditional unit trust investor would look for a one-stop broad equity fund, and diligently pay monthly by debit order. But that is a very small portion of the market today.
Equity funds are now primarily used as “building blocks” by multimanagers and the more sophisticated financial advisers. These investors often blend three or four equity funds together, preferring funds which represent the top picks of each fund manager.
This month we look at these concentrated general equity funds, or, as their managers prefer to call them, focused, high-conviction funds.