Ready-made investment funds

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

Does the idea of actively picking investments feel overwhelming? Today I’m showing you the simpler option: Ready-made funds.

The Investing Masterplan

Episode 5 – Ready-made funds: Your guide to managed investments.

My name is Harriet Ballard. I am a multi-asset portfolio manager at Aviva Investors and for the last 15 years I’ve been analyzing markets and looking for ways to make money for clients. I love evaluating the world around me, investigating how companies and countries are performing and scrutinizing policy.

Throughout this episode, I’ll introduce you to ready-made multi-asset funds and explain how they incorporate diversification, a fundamental feature of long-term investing including for your pension. We’ll also explore why risk target funds make investing simple and look at how multi-asset funds adapt to market shifts. All so that you can start to see investing in a new light.

Chapter 1: Understanding ready-made multi-assets

When you start investing your first thought might be buying shares in a company but that’s a bit like buying bread from a bakery. While shares are often where people start their investment journey, there is a much broader universe of assets to invest in. No one could live on bread alone, we all need a balanced meal. 

A multi-asset fund is like going to the supermarket where you can get all the ingredients you need in one place. Multi-asset funds blend together investments in shares, also known as equities, as well as credit, government bonds, currencies and alternative assets to create the balance you need. This blend of assets is ideal for building your wealth which is why we’ve created a range of ready-made multi-asset funds that you can use within your pension or investment savings account. Think of a ready-made fund like a ready-made meal. It’s designed to save you time and effort whilst still giving you a balanced mix. Instead of buying all the ingredients from the supermarket and spending hours in the kitchen, you can just pick the one that’s already made for you. No prep, no cookbooks, no stress. All you need to decide is what you want to eat.

At Aviva, our ready-made funds are all about keeping things simple and flexible, with options to suit different goals and risk comfort levels. And you can check in on your money at any time through the MyAviva app.

Chapter 2: How ready-made multi-asset funds are built for diversification

Now that we understand what a ready-made multi asset fund is, let’s talk about why they can be a good investment choice. For your pension for example. Nothing with investing is guaranteed. The future is uncertain. Markets move up and down. And while we all hope that our investments grow steadily over time, nothing ever moves perfectly in a straight line. So you could get back less than you put in. That’s just the nature of investing. As investors, we are always attempting to express our expectations for the future in the assets that we decide to hold but putting all your eggs in one basket is not a good idea.

Diversification is an important benefit of multi-asset funds. We’ve already touched on this in earlier episodes but just to remind you diversification simply means spreading your investments across a range of different assets so you’re not relying on just one thing. In a multi-asset fund that means holding a blend of equities or shares, bonds and sometimes even other types of investments, alternative assets like property or commodities. The idea is that when one part of your portfolio isn’t doing so well another part might be doing a little better and that helps to keep things in balance. For example, bonds are often seen as a more defensive asset – they can help diversify the value of your investment during times when shares might be falling. That’s because shares and bonds often move in different directions. Of course, they don’t always behave like that. Markets can be unpredictable, so fund managers are constantly keeping an eye on how these relationships change over time. It’s all part of the ongoing work that goes into managing a multi-asset fund carefully and thoughtfully.

Our Universal Retirement Fund, available within our SIPP, blends together different mixes of equities and bonds, depending on where you are in your journey towards retirement. Diversification is all about buying a good range of assets and not relying on one thing or one region. We buy equities and bonds from all over the world, but we don’t stop there. We also buy alternative assets.

Alternative assets are a bit different form your typical shares and bonds. They can help add another layer of diversification. One popular example is gold. It’s often seen a safe store of value, something investors turn to when they’re feeling uncertain about the future. Gold often holds its own value when other assets wobble or fluctuate making it a common ingredient in well-balanced portfolio. Those who have held gold in portfolios in 2025 will be happy as gold increased over 50%. Good news for all Aviva customers invested in our ready-made solutions within a pension or ISA. Our Multi-Asset Plus product includes gold, as an alternative asset class.

Chapter 3: What are risk target funds?

So we’ve talked about how multi-asset funds are designed to build in diversification. Now let’s talk about something that feels a little less comfortable, but just as important – risk.

We all take risks every day, but we balance those risks against the benefit of taking them. Think about it. Every time you get behind the wheel of a car, you’re taking a risk. There’s always a chance that something unexpected could happen, but we balance the risk against the reward of getting to our destination faster and more conveniently. Investing works in a similar way. In the world of markets, when we talk about risk, what we really mean is how much the value of something can move up and down, or how volatile it is. After you’ve invested, how likely is it that it will be in the same place of close to where you left it when you come back? Low-risk assets tend to move more steadily and predictably, like your gran taking a stroll down a path in the park. High-risk assets on the other hand can be a bit more unpredictable. Think of a two year old in the park who suddenly ran off to see the ducks. The more high-risk assets you hold, the more bumpy or volatile your returns will be. But just like taking the car instead of walking, that extra risk might help you reach your financial goals a little faster. It’s all about finding the balance that feels right for you. That’s why when we build our multi-asset funds we take into account the level of risk each investor is comfortable with. Because everyone’s different, our funds are grouped into easy to understand categories to help you choose the one that matches your comfort zone. Let’s take a look at the different risk levels we cater to.

Lower Risk: You want some returns but prefer to keep things steady, accepting potentially small increases in value to limit ups and downs.

Lower to medium risk: Your aim is to increase the chances of a positive return but you still prefer fewer bumps along the way.

Medium to high risk: You’re aiming for stronger returns and are comfortable accepting a bit more movement in your investments.

Higher risk: You’re focused on higher potential returns and understand that that comes with bigger ups and downs along the journey.

The important thing to remember is that no level of risk is right or wrong. It’s all about what suits you. No matter how you invest, investment values can rise as well as fall.

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

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. 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 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 form 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. Join us in episode 6, the series finale, where we look at what to consider when choosing a ready-made fund. I’ll see you there.

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