The Friends First Indexed Fund range can be used in conjunction with our actively managed funds to help create a diverse, cost effective overall portfolio. Friends First has a range of 12 Indexed Funds giving access to most of the major investment markets.
Friends First Indexed Fund Range
|Indexed World Equity
Indexed 50/50 Equity
Indexed Global (Ex Euro) Equity
Indexed US Equity
Indexed Eurozone Equity
Indexed UK Equity
Indexed Emerging Markets
|Fixed Interest Funds||Indexed Eurozone Government Bond
Indexed Eurozone Long Bond
Indexed Eurozone Corporate Bond
Indexed funds are passively managed funds. They aim to replicate, rather than beat, the performance of a specified published index. If you are sensitive to the overall cost of your portfolio you may benefit from mixing indexed funds with actively managed funds; such as Absolute Return funds. Indexed funds usually have lower associated costs and can be used to reduce the overall fee costs of a portfolio.
Benefits of investing in indexed funds
Indexed funds hold either all the securities in their specific index or a representative sample, meaning that by investing in a single indexed fund you may gain exposure to hundreds of securities.
- Lower costs
Investing in an indexed fund is a form of passive investing. The primary advantage to such a strategy is that lower management charges are usually offered on indexed funds when compared to charges on actively managed funds.
- Simplified strategy
As an indexed fund exactly replicates a specified index it is easier to understand the strategy and objectives of the fund.
Automated tracking versus active management
An actively managed investment fund is a fund in which a manager or a management team makes decisions about how to invest the fund’s money. A passively managed fund, by contrast, simply follows a market index.
The passive versus active management doesn’t have to be an either/or choice for investors. Combining the two can further diversify a portfolio and actually help manage overall risk and fund management costs.