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Some types of securities have different tendencies depending on market conditions.
EG: As shares (equities) rise in price corporate bonds and gilts tend to remain quite stagnant. As shares fall in price corporate bonds tend to rise in price, as do gilts.
Within the assets mentioned above there are literally millions of companies you can invest in. Some of these companies will prosper, some will fail. There is no way of accurately predicting which will fail and which will prosper so it is good to spread it.
Fund managers do this well. They pick companies that they have researched and chose the companies you invest in accordingly. Obviously some fund managers are better than others and therefore you should spread your money between different managers and look at the rating of their past performance..
You should however not solely rely on past performance as an indicator to future returns
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Where can you get financial investment advice?
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