With stock and bond markets showing marked volatility recently, savers might want to consider how they can diversify their investments to protect their money from potential losses.
The need for such caution was highlighted last month as the launch of Chinese AI app DeepSeek led the S&P500 to plunge 1.5% in one day, as shares in chip maker Nvidia plunged 17%.
Government bond yields have also been volatile recently, amid concerns over how the new administration of US President Donald Trump will approach economic policy. For example, UK 10-year gilt yields started the year at 4.55% before rising rapidly to peak at 4.89% on 13 January, indicating concern about the strength of the UK economy and the Labour government’s policies.
Hal Cook, senior investment analyst at Hargreaves Lansdown, has chosen three funds he thinks could help control volatility in your Stocks & Shares Individual Savings Account (ISA).
Cook suggests investing in funds could be better than trying to pick individual stocks, as they tend to be invested across a wide range of assets.
Legal & General Future World ESG Tilted and Optimised Developed Index
This index tracker invests in 1,400 companies around the world, taking into account environmental, social and governance (ESG) criteria.
There is a bias towards sectors including technology, pharmaceuticals and financial services. From a geographical perspective, it is mostly invested in the US.
FSSA Asia Focus
In Cook’s view, the FSSA Asia Focus fund has an impressive track record of picking some of Asia’s best-performing companies, while its manager Martin Lau and his team have a “great pedigree” of investing in the region.
Troy Trojan
The Troy Trojan fund seeks to grow investors’ money steadily over the long run, while limiting losses when markets fall.
The fund invests in a mix of investments across shares, bonds, commodities and currencies. Its holdings include well-known big name brands, as well as higher-risk smaller companies.
Robin has more than six years of experience as a financial journalist, most of which were spent at Citywire, and covers the latest developments in the investing, trading and currency transfer space. Outside of work, he enjoys reading literature and philosophy and playing the piano.
You can contact Robin at robin@goodmoneyguide.com
