![](https://www.hl.co.uk/__data/assets/image/0011/19504271/Junior-ISA-Hero-Banner-Jan-2024.jpg)
How to build a responsible fund portfolio
Important information: investing for longer increases the likelihood of positive returns. Over a period of five years or more, investments usually give you a higher return compared to cash savings. But investments can go down as well as up in value, so you could get back less than you put in.
The information on this page isn't personal advice – ask for financial advice if you’re not sure what’s right for you.
The basics of building a portfolio
It can be tricky building a responsible investment portfolio. It takes time to understand the approach each fund manager is taking, whether the fund has the potential to perform well over the long term and how it fits into your portfolio.
Ethics are personal, and responsible investment funds invest in lots of different ways. It's important to check each fund is managed in a way that fits with your values before you invest.
Before you start investing, we think it's important to consider your goals. You might want to build a lump sum for retirement, or help fund your children's education. Maybe you want to save for a wedding or a house. Remember though, investing is for the long term – that’s at least five years.
If you have a five to ten year investment horizon you should generally consider taking less risk, investing more of your portfolio in bonds or mixed asset funds.
If you're investing for ten years or more, you might want to think about taking a little more risk and invest a bigger part of your portfolio in share-based investments. Taking more risk could mean you see some big swings in the value of your investments, so make sure you’re comfortable.
When it comes to building the portfolio itself, we think a core-satellite approach is an option for most investors. The core usually forms the bulk of the portfolio, and is complemented by smaller 'satellite' investments, possibly in higher-risk areas.
The idea is to help you achieve greater returns with a relatively-lower level of risk, thanks to diversification. Holding a well-thought-out portfolio that invests in lots of different countries, industries and types of investment should reduce the impact of any one area performing poorly.
The value of investments, including lower risk investments, will go up and down so you can get back less than you invest.
If you need help building your own portfolio, or if you're not sure an investment is right for you, ask for financial advice.
The funds below are ideas to help build a portfolio – they shouldn’t be looked at as a model portfolio. Investing in these funds isn’t right for everyone. Investors should only invest if the fund’s objectives are aligned with their own and there’s a specific need for the type of investment being made. Investors should understand the risks of each fund before they invest and make sure any new investment forms part of a diversified portfolio. Comments are correct as of 30 April 2024.