Andrew Morris: How important are risk ratings?

In To diversify … or not? we considered the importance of diversification in investigating what place multi-asset funds inhabit in today's low-cost, tracker-dominated world. It is imperative suitable multi-asset products are available for clients in order to ensure their risk requirements and appetite are fully taken into consideration. The universe of funds available is, however, huge and encompasses an array of fund options and strategies. One way in which advisers are able to filter this universe is through risk-ratings - although this is not as simple as it sounds. This is because fu...