- Passive global equities funds can be a great core holding
- You may need to complement them to ensure your portfolio is as diversified as possible
- But doubling up is a risk to be avoided
A global equities tracker fund can be a great way to start a portfolio. Tracking a global index of stocks, these products are well diversified across, typically, over 1,000 equities from different major markets in many industry sectors.
As your portfolio grows, this fund could continue to be your main investment. But you should add others to it because there are important growth areas to which it won’t provide meaningful exposure – and because it is sensible not to put too much money into any one individual product.