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Funds
Details about the market.
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Explanation
Funds are traditionally seen as potentially offering a lower risk exposure to the markets by effectively diluting risk.
There are hundreds of funds each with a different structure and therefore combined risk.
Funds can simply take positions listed companies on the equity market, or combine that with positions in other funds (fund of funds). Some funds will be made up of a very restictive exposure to a single sector in the equity market whilst others take wide positions across multiple sectors thus running a return more akin to the underlying market trend.
Each fund is rated by its combined beta value which is a calculated form of risk, reflective of its movement relative to the underlying market.
A trader can hold up to £40m in any one fund.
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