The coronavirus pandemic and its effects have resulted in some very high market volatility this year and it is not impossible that there will be more. Although as an investor you cannot control events or markets, you can prepare for potential volatility and market falls by ensuring that you have a well-diversified portfolio. If you do this, when one area suffers badly hopefully not all of your assets will.
One of the best and often only ways for private investors to diversify is with funds, which can help you build core portfolio exposures such as bonds, and more unusual but useful assets such as infrastructure and private equity.
For most investors who hold equities it makes sense to diversify internationally, and the most tax-efficient and cost-effective way to do this is with funds. You also cannot directly invest in all overseas listed equities, including in important growth areas such as emerging markets. But you can easily access all these assets via funds, thousands of which are available to UK private investors. And this is where the IC Top 100 Funds comes in, as it tries to highlight what we and the expert panel think look like some of the better active fund options in a number of categories.