Diversified growth funds
Diversified growth funds invest in a range of asset classes, which are typically more aggressive than balanced funds.
A growth fund is a diversified portfolio of stocks that has capital appreciation as its primary goal, with little or no dividend payouts. The portfolio mainly consists of companies with above-average growth that reinvest their earnings into expansion, acquisitions, and/or research and development (R&D).
Diversified growth funds aim to provide long term capital growth and some distributions by investing in a range of assets with an emphasis on growth assets. Typically growth funds targets a 30% allocation to income assets and 70% to growth asset classes.
| Investment Options | Risk Level | Investment Objective | Investment Strategy |
|---|---|---|---|
| Diversified Growth Funds | |||
| Vanguard Diversified High Growth Index Fund | 6 – High | The fund seeks to track the weighted average return of the various indices of the underlying funds in which it invests, in proportion to the Strategic Asset Allocation, before taking into account fees, expenses and tax. | The Fund provides low-cost access to a range of sector funds, offering broad diversification across multiple asset classes. The High Growth Index Fund invests mainly in growth assets, and is designed for investors with a high tolerance for risk who are seeking long-term capital growth. The Fund targets a 10% allocation to income asset classes and a 90% allocation to growth asset classes. |
| Vanguard Diversified Growth Index Fund | 6 – High | The Vanguard Growth Index Fund seeks to track the weighted average return of the various indices of the underlying funds in which it invests, in proportion to the Strategic Asset Allocation, before taking into account fees, expenses and tax. | The fund provides low-cost access to a range of sector funds, offering broad diversification across multiple asset classes. The fund is biased towards growth assets, and is designed for investors seeking long-term capital growth. The fund targets a 30% allocation to income asset classes and a 70% allocation to growth asset classes. |
| Russell Investments Growth Fund | 5 – Medium to High | To provide capital growth over the long term with a portfolio focusing on growth assets, while accepting fluctuations in capital values in the short term. | The fund typically invests in a diversified portfolio mix with exposure to growth investments of around 90% and defensive investments of around 10%. Derivatives may be used to implement investment strategies. |
| MLC Wholesale Horizon 5 Growth Portfolio | 6 – High | Aims to outperform the benchmark, before fees, over 5 year periods. | MLC actively looks for opportunities to provide better returns, or less risk, than those generated by the benchmark asset allocation and to manage the Trust’s exposure to the risks of investing in markets. Our investment experts do this by:
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| Schroder Real Return Fund | 5 – Medium to High | To achieve a return of CPI plus 4% to 5% p.a. before fees over rolling 3-year periods while minimising the incidence and size of negative returns in doing so. | The fund does not have fixed strategic asset allocation benchmarks but instead adopts a forward looking and flexible approach to achieve their stated objectives. The fund stands in contrast to the traditional multi-asset investment approaches which construct investment portfolios around relatively static asset allocations. |
