HL MULTI-INDEX BALANCED

The HL Multi-Index Balanced fund is the middle risk fund of the range. On a scale of one to ten, if investing entirely in global shares is a ten, this fund would receive a rating of six.

HL Multi-Index Balanced

Risk rating (6/10)

Compared to:

HL Growth Fund (Default investment Fund)

Risk rating (8.5/10)

How does HL Multi-Index Balanced work?

The fund typically invests a little over half of your money into global company shares, including some in higher risk emerging market shares. The remainder is invested into a mix of different types of bonds.

This fund favours bonds issues by companies with good credit ratings which carry less risk compared to higher risk options. These bonds are more risky compared to Government Bonds, so the fund also has some investments in both higher and lower risk types to ensure a good spread of risk across the fund.

Seeking Growth
61.5%
Seeking Stability
38.5%
Seeking Growth
61.5%
Seeking Stability
38.5%

A more detailed guide of the fund's investments is:

Equities

Developed Markets
46.1%
Emerging Markets
9.3%
Total
55.4%
Developed Markets
46.1%
Emerging Markets
9.3%
Total
55.4%

Fixed Income

Global Corporate Bonds
25%
Government Bonds
13.5%
Higher Risk Bonds
6%
Total
44.6%
Global Corporate Bonds
25%
Government Bonds
13.5%
Higher Risk Bonds
6%
Total
44.6%

This is just a guide to the fund's typical investments. The actual asset allocation may vary over time. View the HL Multi-Index Balanced factsheet Download HL Multi-Index Balanced Key Investor Information Document

Expected returns

We forecast a full range of outcomes for markets, allowing us to calculate the most likely potential returns for this fund, as well as good and bad outcomes. We predict a 1 in 6 chance that the outcome will be worse than the bad outcome. And a 1 in 6 chance that the outcome will be better than the good outcome. The potential outcomes you could expect from this investment are based on you investing £10,000 as a lump sum for 10 years:

HL Multi-Index Balanced

Bad outcome
Average outcome
Good outcome
£11,844.30
£17,358.40
£22,776.89
Bad outcome
Average outcome
Good outcome
£11,844.30
£17,358.40
£22,776.89

Compared to:

HL Growth Fund (Default investment fund)

Bad outcome
Average outcome
Good outcome
£11,171.50
£19,716.15
£28,176.94
Bad outcome
Average outcome
Good outcome
£11,171.50
£19,716.15
£28,176.94

These figures include fund charges and the HL account charge of 0.45%. Your HL account charge could be lower than this, but it will not be higher. The figures are in monetary terms and do not account for inflation, which will reduce spending power over time. These figures are an example, they are not a guarantee of a positive return. There is a 1 in 6 chance that the amount you get back could be lower than shown. You could even get back less than you invest. Data correct as at: 27 June 2024.

How we forecast outcomes

Our forecasts for risk and return are based on three main things:

  • Investment theory – what is a sensible expectation?
  • Market implied forecasts – what does the market expect?
  • Historical outcomes – are our forecasts consistent with historical experience?

We look at the risk and return on individual types of investment, like UK shares and global government bonds, as well as how changes in the price of one type of investment could affect the prices of all the types of investment. This allows us to forecast how different portfolios of investments will perform. These forecasts are based on our strategic asset allocation models – models which show different types of investments grouped together and how they perform, which provide the starting point for us when building funds. They do not include any expectations for extra performance that we aim to generate through more tactical choices the managers make, or any additional risks. When we look at risk, we review:

  • How each type of investment and portfolio goes up and down and by how much.
  • The range of expected performance
  • The maximum amount a fund can fall in value over a period of time
  • The chances of an investment beating inflation
  • The portfolios will also reflect HL’s managers combined knowledge and experience.

Expectations are accurate at the point in time and will change as markets and allocations change. Forecasts do not take account of any tax considerations that you may need to consider.

Charges

Yearly charge based on an example £10,000 investment and a maximum HL account charge of 0.45% and assuming no growth.

HL Multi-Index Balanced

Fund charge (0.30%)
HL account charge (0.45%)
Total annual charge (0.75%)
£30
£45
£75
Fund charge (0.30%)
HL account charge (0.45%)
Total annual charge (0.75%)
£30
£45
£75

Compared to:

HL Growth Fund (Default investment fund)

Fund charge (0.10%)
HL account charge (0.45%)
Total annual charge (0.55%)
£10
£45
£55
Fund charge (0.10%)
HL account charge (0.45%)
Total annual charge (0.55%)
£10
£45
£55

See how the costs will affect your investment in detail

The fund charge is taken automatically from the money within your pension. It includes all fund expenses but transactions within the funds can have additional costs. These costs are incurred by all funds when investments within them are bought or sold, and they are reflected in the fund's performance. The HL account charge covers the automatic changing of funds within your pension when needed and the cost of looking after your investments. This won’t exceed 0.45% per year and is taken from your pension once a month. This fund is managed by Hargreaves Lansdown Fund Managers Ltd, part of the Hargreaves Lansdown Group. If you invest, HL will receive the fund's management charge, as well as the HL account charge.

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