Seven fund ideas for your portfolio

Before you decide which fund to buy, you need to establish two key things: what is your risk appetite and how long is it before you need to access the money.

Those happy to ride out the ups and down of the market, and have time to do so, might be comfortable owning funds that invest in shares. Those with a more cautious mindset and/or a shorter timeframe for investing, such as three years, might gravitate more towards bonds. An ‘all in one’ multi-asset fund might interest someone looking for a bit of everything.

Fill in the gaps

Thinking about what you already own in your portfolio could help you spot some gaps to fill.

Diversification is important with investing, namely exposure to different geographies, industries and asset classes, such as shares, bonds, property and gold.

For example, someone who is only invested in one area, such as the US, might consider adding a fund that provides exposure to another part of the world. Equally, someone who wants to generate an income from their investments might want to add dividend-paying funds to their portfolio if the bulk of their existing holdings generate most of their returns through capital gains, which increase the value of investments but don’t offer a payout until you sell.

Why charges matter

Once you’ve determined the type and category of fund that might slot nicely into your portfolio, look closely at the in-built charges as they can vary from fund to fund.

How AJ Bell can help

AJ Bell offers various ways to help choose funds, including a tool that lets you narrow down the investment universe so you can focus on specific parts of the market.

Our experts have searched the investment world and picked out a shortlist of their favourite funds, based on value and track record, among other factors.

Here are some examples from the shortlist covering different parts of the market, alongside one of our own funds. We’ve split the list into passive funds, which follow an index like the FTSE 100, and actively managed funds where the portfolio holdings are hand-picked by a team of fund managers. None are recommendations and you should always do your own research.

Growth

Passive: iShares MSCI World SRI ETF

Global equity tracker funds are popular with investors of all ages. They cast the net wide and provide exposure to companies on stock markets around the world.

iShares MSCI World SRI ETF is one such fund, albeit with a twist. It provides diversified, low-cost exposure to global shares that meet high environmental, social and governance standards. It avoids any companies involved in guns, tobacco, alcohol and gambling.

Active: Lazard Emerging Markets

Emerging markets aren’t for everyone as they can be higher risk investments and require patience. For those prepared to take those risks, emerging markets are a natural place to look for investment growth opportunities.

Lazard Emerging Markets fund has stakes in companies located in places such as Taiwan, South Korea, China and Hungary. Lead fund manager James Donald brings considerable experience in navigating this part of the investment world.

Income

Passive: iShares MSCI Target UK Real Estate ETF

Property can be a good source of income for investors. Not everyone can afford to own property directly, so one alternative is to put money into a property-related investment fund.

iShares MSCI Target UK Real Estate ETF is an interesting way to get exposure to property-like returns. It mirrors the performance of an index made up of property investment companies and certain types of UK government bonds. The ETF yields 7.4%.

Note that UK property has gone through a difficult period in recent years, but in 2025 started to show signs of recovery.

Active: Man Income

The UK stock market is a good place in which to find generous dividend payers. The FTSE 100 index yields 3%, but by digging down into the individual companies, you can find more fruitful sources of dividends.

Man Income fund fishes for opportunities on the UK market, with a focus on larger companies such as those in the FTSE 100. It yields 4.9% and looks for companies whose profit streams it believes to be undervalued by the market.

Sector or theme

Passive: iShares automation & robotics ETF

The funds world has something for everyone. While some people might want to cast their net wide with a fund covering the world or a particular country, others prefer to zoom in on a particular sector or investment theme.

Technology has been a rich source of investment returns over the past decade, and within that field it is possible to focus on a sub-sector such as automation and robotics through a specialist fund.

iShares Automation & Robotics ETF tracks an index made up of approximately 135 stocks involved in technology that help to make the lives of companies and consumers more efficient. This ranges from robots for factories, equipment to test technology, solutions to drive productivity, and automation technologies.

Active: Polar capital global insurance

Insurance may lack the glitz and glamour of the technology sector, yet it can be an interesting place to consider as an investment. Demand is less sensitive to what’s happening economically.

Investors often view insurance as a place to get rich slowly. There are no guarantees you will make money, but history suggests over the long term it is an interesting place to explore.

Polar Capital Global Insurance has a portfolio of between 30 and 35 stocks in this sector. It often invests in companies where management have a meaningful ownership stake which means their interests are aligned with shareholders’.

An all-in-one fund

Someone wanting a mixture of different assets in a single fund might be interested in multi-asset funds. They typically contain a mix of shares and bonds, and potentially other investment types, all in a single product.

One way to find such funds is to use AJ Bell’s fund screening tool and under the ‘Sector’ drop-down menu, look at the Mixed Investment 0-35% Shares, 20-60% Shares or 40-85% Shares categories. The different percentages relate to how much of a fund’s portfolio is held in shares.

AJ Bell has a range of its own multi-asset funds. The investment team choose how much is allocated to different parts of the market and use passive ETFs to get exposure.

For example, AJ Bell Balanced Fund has a mixture of higher and lower risk investments, weighted more towards the former. It’s aimed at investors who want to see their money grow but are equally keen to keep unpredictability at bay.

At time of the writing, it had 62% in shares, 33% in bonds and 5% in cash. On the shares side, the fund provides exposure to companies in various parts of the world including US, UK, mainland Europe, Japan and China. On the fixed income side, you get exposure to high quality bonds, government bonds, and more.