Our Basic Funds

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In this article, you will find a detailed explanation of our Basic Funds: Conservative, Balanced and Growth.

The basic funds provide a starting point for every investor. They cover a broad range of the world economy, and give you the stability of bonds, combined with the potential for gains of shares.

These funds are well-diversified, meaning that your money will be spread over many different types of holdings. Spreading your money broadly protects you from a big movement in any one company, making your returns more stable than if you were to invest in one stock. In practice this means you could indirectly own a little bit of Royal Mail, a little bit of Nike and a little bit of the U.S. treasury debt.

Who manages these funds?

The basic funds are managed by Vanguard, one of the biggest Investment Managers in the world with over 40 years of expertise, running some of the lowest cost index-funds*. In addition, they have a great structure; because Vanguard is owned by its clients (people who invest in their funds), they use excess money to lower costs, rather than to make profits. This keeps it as cheap as possible for you!

Conservative Fund

  • Composition

The Conservative fund invests in a diversified portfolio of assets composed of approximately 20% shares, and 80% bonds. It invests across countries, and industries to represent a broad representation of the market.

  • Provider

The name of the underlying fund is the “Vanguard LifeStrategy 20% Equity Fund”, and is provided by Vanguard Investments UK Limited.

  • Risk level

3 out 7 from industry standard

  • Past Performance

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Fund result do not include Plum Fees. Past performance is not a reliable indicator of future results.

More details here: Vanguard LifeStrategy 20% Equity - KIID
Key investor information: Vanguard LifeStrategy 20% Equity - KIID

Balanced Fund

  • Composition

The Balanced fund invests in a diversified portfolio of assets composed of approximately 60% shares, and 40% bonds. It invests across countries, and industries to represent a broad representation of the market.

  • Risk level
    4 out 7 from industry standard

  • Provider
    The name of the underlying fund is the “Vanguard LifeStrategy 60% Equity Fund”, and is provided by Vanguard Investments UK Limited.

  • Past Performance

balanced

Fund result do not include Plum Fees. Past performance is not a reliable indicator of future results.

More details here: Vanguard LifeStrategy 60% Equity Fund
Key investor information: Vanguard LifeStrategy 60% Equity - KIID

Growth Fund

  • Composition

The Growth fund invests in a diversified portfolio of assets composed of approximately 80% shares, and 20% bonds. It invests across countries, and industries to represent a broad representation of the market.

  • Risk level
    4 out 7 from industry standard

  • Provider
    The name of the underlying fund is “Vanguard LifeStrategy 80% Equity Fund”, and is provided by Vanguard Investments UK Limited.

  • Past Performance

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Fund result do not include Plum Fees. Past performance is not a reliable indicator of future results.

More details here: Vanguard LifeStrategy 80% Equity - KIID
Key investor information: Vanguard LifeStrategy 80% Equity - KIID

Please keep in mind as with all investing, your capital is at risk. Investments can go down as well as up and you may get back less than you originally invested.

*Vanguard average expense ratio: 0.11%. Industry average expense ratio: 0.62%. All averages are asset-weighted. Industry averages exclude Vanguard. Sources: Vanguard and Morningstar, Inc., as of December 31, 2017.