How to build a mutual fund portfolio at the present time

With bond interest rates at minimum, a good alternative can be to understand and define how to build a mutual fund portfolio, suitable for those who do not want to venture directly into the stock market.

A real performance hunt therefore.

In flexible funds the manager has a wide possibility of maneuver and if he is good even in the event of market declines he manages to keep the fund's performance afloat.

To build our portfolio we will choose 4 best mutual funds to allocate 15% of the available share and 4 in which to invest 10%.

We proceed by categories, yes because flexible funds are then subjected to a further subdivision into various types based on the main orientation and the financial instruments adopted by the manager.

Savings and investments: Flexible bond funds

Let's start at build the portfolio with due caution and the first 15% we place it on a global bond fund.

For the occasion, the mutual funds to buy are:

Legg Mason Brandywine Global Income Optimiser Fund Class C US $ Accumulating,ISIN IE00BBT3JR68

The second 15% of our flexible portfolio we are going to place on a flexible dollar bond fund, we like the:

Natixis International Funds (Dublin) I – Loomis Sayles Multisector Income Fund I / D (SGD), ISIN code IE00B7F4MD25

Flexible asset allocation for a mutual fund portfolio

Let us now turn to something more speculative or in any case direct to stock.

Let's start slowly also because we insert the euro area that involves the due caution and we put a 15% on a balanced flexible in euro, we choose:

BlackRock Index Selection Fund Market Advantage Strategy B EUR Acc ISIN IE00B1XFCH91 an excellent fund that also boasts 5 stars Morningstar (See the tab on Investing).

The last 15% we are going to place on a fund that belongs to the Long / Short category and the choice inevitably falls on:
Threadneedle (Lux) – Pan European Absolute Alpha Class AEP (EUR Distribution Shares) ISIN LU1469428905, a fund that is literally dominating what is probably the most difficult category to manage for a manager.

If only because in two directions, the possibility of error would double before the double opportunity.

Four 10% funds to complete the asset allocation

We now identify four funds to each allocate 10% of our portfolio.

Let's go back to the global bond category and insert:

BNY Mellon Global Funds PLC – BNY Mellon Global Dynamic Bond Fund EUR G Acc ISIN IE00BZ1LGK81

Then we return to Long-Short funds and opt for:

Kairos International SICAV – Pegasus UCITS X USD Acc with ISIN LU1484756793

We conclude with two UCITS operating in the Multistrategy category:

Candriam World Alternative Alphamax I (EUR) ISIN LU0273059971

and to follow:

Schroder GAIA Two Sigma Diversified I Accumulation USD, with ISIN LU1429039206

How to build a mutual fund portfolio: the rules of common sense of asset allocation

It goes without saying that many of these funds are at an all-time high and that therefore the fact of allocating all or part of the available assets to this portfolio must be the investor's free choice.

Based on your risk profile and the volatility he believes he can consider acceptable.

As a matter of fact, in active management it is a potentially very volatile portfolio and therefore everyone will have to make preliminary accounts with their own emotions in case of unfavorable market phases.

After this self-analysis, everyone can then establish the amount to be invested with full awareness.