Select 50 Balanced Fund

Tom Stevenson introduces our new fund that brings our experts' favourite funds together in one investment.

Fidelity Personal Investing is focused on guiding our customers to better investment outcomes. We live by the mantra: Making Good Investing Easy.

That’s the thinking behind the launch of the Select 50 Balanced Fund, a one-stop investment that makes it easier than ever to tap into the expertise behind our popular Select 50 ‘best buy’ list.

Building on the Select 50

We relaunched the Select 50 fund list in July 2016. It is a popular source of investment ideas for our customers, especially for more-engaged investors who like to choose their own funds but who also welcome some guidance from Fidelity’s expert fund selectors.

You can find out more about the Select 50, including how our experts select funds for the list, on our Select 50 page.

Speaking to our customers since the launch of the Select 50, it has become clear to us that we can go even further to help investors achieve better financial outcomes.

For some investors, the challenge of putting together a portfolio of funds that work well together is too difficult or too time-consuming. For others, the choice of funds on the Select 50 is still too wide.

For investors like this, who buy into the idea of the Select 50 but want a bit more help, we’ve developed a new one-stop fund.

We’re proud to present the Fidelity Select 50 Balanced Fund.

So what is the Select 50 Balanced Fund?

The Select 50 Balanced Fund is a quick and easy way to access the investment expertise that underpins Fidelity’s popular Select 50 list of preferred funds.

The fund is a portfolio of other funds (a ‘fund of funds’) that will invest predominantly in Select 50 funds. It aims to produce long-term capital growth from a globally-diversified range of assets.

The fund will be balanced between assets with varying degrees or growth potential and risk. These might include shares, commodities, property, bonds and cash.

The fund will operate within some fixed limits. Equities (shares) will account for 30-70% of the fund’s assets; debt instruments (bonds, including high yield and emerging market bonds) will represent 20-60% of the fund; cash will be the remaining 0-20% of the fund.

Why did we decide to launch the Select 50 Balanced Fund?

We conducted some extensive customer research before deciding to launch the Select 50 Balanced Fund. The research confirmed our view that there is considerable demand for a single investment fund built from a shortlist of ‘best buy’ funds.

Among the investors we questioned, we found:

  • More than two thirds described themselves as having a medium risk appetite - the balanced nature of the fund is aimed at this moderately cautious target market
  • More than half expressed a preference for actively-managed rather than passive funds
  • More than two thirds said they ‘enjoy looking after my investments and spend time ensuring I get it right’ - the fund is aimed at this more engaged investor who nevertheless wants some extra help

Who might be interested in the Select 50 Balanced Fund?

We serve different broad categories of self-directed investor. Our research shows there are three main groups:

  • The first, most engaged group, likes to ‘do it myself’. This set of investors enjoys searching through the nearly 3,000 funds on our platform, using the Investment Finder tool to find the most interesting investment opportunities. Investing is a hobby for this group.
  • At the other end of the spectrum is a group of less-engaged investors who understand the need to make financial provision for themselves and their families. But they are busy or just not that interested. Their mantra is ‘do it for me’. For this type of investor, we have a great solution - our Pathfinder tool helps them choose a well-diversified multi-asset fund that suits their personal risk appetite.
  • In between these two extremes is a large set of investors who are interested in investment and want to be involved in the choice of the right funds for their portfolio. But they don’t want to be left on their own. They want Fidelity to ‘do it with me’.

This middle group is already well-served by our Select 50 preferred fund list, a focused list of funds in which our investment experts have a high degree of conviction.

But we'd like to do more for this group. The launch of the Select 50 Balanced Fund is designed to make life even easier for this middle set of investors. The same investment expertise, attention to detail and due diligence that underpins the Select 50. And all in one easy-to-access fund.

What funds are in the Select 50 Balanced Fund?

The Select 50 Balanced Fund will invest predominantly in funds listed on the Select 50 preferred-fund list. In practice, this means the fund will have at least 80% of its assets invested in Select 50 constituents.

To give the manager of the fund the flexibility to try to deliver its objectives, up to 20% of the assets may be in other investments in which the manager has a similar level of conviction.

The Select 50 Balanced Fund will not hold all of the funds on the Select 50 list. The manager will select from the list in order to try to deliver the fund’s long-term growth objectives. The portfolio of funds will be actively managed; it is not designed to simply mirror the performance of all the funds on the Select 50.

We expect the Select 50 Balanced Fund will hold around 30 funds.

Who will be managing the fund?

The fund is managed by Ayesha Akbar, a highly experienced member of the Fidelity Multi Asset team who has been managing multi-manager funds for many years.

How much will the fund cost?

The ongoing charge is 1.25%. This pays for Ayesha's expertise, plus the charges on the funds she chooses (apart from Fidelity funds, where we rebate the cost). You'll also pay our service fee.

How does the Select 50 Balanced Fund compare with other Fidelity multi-asset funds?

The Select 50 Balanced Fund is a simple one-stop way to access the investment expertise behind the Select 50 list.

The fund is a medium risk, balanced fund which aims to deliver long-term capital growth by investing in a globally-diversified range of assets.

Unlike the multi-asset funds accessed via our Pathfinder tool, the Select 50 Balanced Fund is not ‘risk-rated’. It will not be managed against a fixed benchmark or have a targeted return. Rather the manager will be focused on delivering long-term capital growth.

Can I hold the Select 50 Balanced Fund in my ISA or SIPP?

Yes, the Select 50 Balanced Fund can be held within tax-wrappers such as ISAs and SIPPs, and also in an unwrapped investment account. There is a minimum investment of £1,000 in the fund, or £50 a month in a regular savings plan.

How do I invest in the Select 50 Balanced Fund?

Use the button below. If you are already a Fidelity Personal Investing customer, you will be asked to log in to buy the fund. If you're new to Fidelity, you'll be asked to choose an account in which to hold the fund before you buy it.

Invest in an ISA, SIPP or Investment Account

The Select 50 Balanced fund is exclusive to Fidelity Personal Investing customers; you can't buy it through anyone else. You can invest from £1,000 as a lump sum or set up a regular savings plan from £50 a month.

Please remember this is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser. The value of investments can go down as well as up, so you may get back less than you invest.