Active or passive investing

There are two types of portfolios you can invest into:

1. Growth portfolios are a range of risk-graded portfolios designed to achieve consistent long-term capital growth with a focus on preserving capital as well as maximising performance.

• Exposure to a wide range of asset classes and markets
• Primarily invested in investment funds
• Will primarily use active managers seeking to outperform their respective market but will also use passives where appropriate

2. Passive portfolios are a range of risk-graded portfolios provided in association with iShares, designed to achieve consistent long-term capital growth with a focus on preserving capital as well as maximising performance.

• Exposure to a wide range of asset classes and markets
• Primarily invested in index funds and exchange traded investments (ETFs) designed to deliver returns in line with a variety of indices
• Focus on keeping costs to a minimum

When investing over the longer term we recommend passive portfolios as they are lower in cost. When investing larger sums of money, it can be good to diversify across both portfolio ranges.