Asset diversification

[Robo]

I already asked this question in the middle of a different thread, but I think it got mised amount the main point of that thread. I hope I am not in breach of any guidelines by raising it as a new topic. I think it is worth a new thread for newbies like me.

One of the key bits of advice when investing it to cover the four asset classes, equities, property, commodities and cash. Does this imply investing directly in property, or is such diversification provided by a fund like the Eagle Star Matrix Eurozone Property fund which “invests in leading European real estate companies. The fund invests in the shares of the EPRA (European Public Real Estate Association) Eurozone Index via an Exchange Traded Fund”.

 

[Olympian]

Yes, investing like that would give you exposure to a diverse range of properties while not incurring the substantial cost of purchasing an individual property yourself.

I've been thinking a bit of investing this way now that my SSIA has matured and did come across the Eagle Star product. Since it's an ETF you could purchase it directly via a stock broker and this should reduce the annual management fee to that charged by the ETF manager. There might be some information on charges here [broken link removed]

Another option is Standard Life REIT which has been launched recently. This gives exposure to property on a worldwide basis. [broken link removed]