Philip Smeaton: Locating the middle ground

We should not be surprised that risk-targeted funds have rapidly grown in popularity over the last 10 years. The effect of the credit crunch still haunts investors, and recent market volatility - as well as ongoing global economic uncertainty - means people are increasingly nervous and reticent to invest outside of their comfort zone. As more of these types of funds come to market, it is clear advisers and their clients are feeling just as concerned about the amount of risk they are taking on as they are about the returns they are achieving. In most cases, they are happy to trade some of...