How our ready-made funds adapt to market shifts

Chapter 4: How multi-asset funds adapt to market shifts

This video is for educational purposes only. This should not be viewed as advice or a recommendation to invest.

So we’ve talked about how your risk level shapes your investment journey. Whether you prefer the chance of a smooth and steady ride, or you’re comfortable with a few potential twists and turns. But what happens when the road itself changes?

Markets don’t always behave the way we expect them to. They can be unpredictable.

The value of your investment may go down as well as up and you could get back less than invested.

That’s where our Multi-Asset Plus funds really come into their own. They’re part of our ready-made fund range and designed to adapt when conditions shift, helping your investments stay on track, even when markets get a little bumpy. Let’s take a closer look at how that works.

We believe in long-term investing because building wealth is a marathon, not a sprint. So when we design our funds, we start by thinking about the long game. That means allocating across different asset classes based on long-term view of how to generate the best risk-adjusted return. This process is known as strategic asset allocation and is reviewed for each fund annually, adapting to the structural changes in the market. Once those long-term allocations are in place, we draw on expertise throughout Aviva Investors to find the best returns within each sector or asset class. That might mean choosing a certain company, sector or region that looks well placed to grow. This knowledge helps funds adapt to changes in the outlook of a company for example. That alters the expected profitability over time.

Finally, we add another layer of adaptability through what’s known as tactical asset allocation. This is where our managers make shorter-term adjustments in response to market conditions, whether it’s through a sudden shift in sentiment, political changes or unexpected news. For example, in 2025, we reduced equities ahead of the Liberation Day announcement from the US administration.  So we helped manage risk when we saw potential for increased market volatility. In simple terms, we don’t just set and forget. As fund managers at Aviva Investors, we actively monitor your ready-made multi-asset funds and make thoughtful, timely adjustments to help smooth your investment journey. A valuable feature for long-term investing within your pension or ISA.

So that’s a wrap for this episode of The Investing Masterplan. Today we’ve seen how a ready-made multi-asset fund delivers the balanced investment strategy you need in your pension and ISA. If there’s one thing I’d like you to take away from today, it’s this: Investing doesn’t have to feel complicated. With a little help from a ready-made multi-asset fund, you can build a plan that grows with you and helps keep your money on track, whatever the markets are serving up.

This video is for educational purposes only. This should not be viewed as advice or recommendation to invest. Investing offers the potential for better returns than cash savings over the long term (5+ years). But there are risks, the value of your investments may go down as well as up, and you may get back less than invested. If you want advice on investment choices, then we’d recommend speaking to a financial adviser. There may be a charge for advice.