Black­Rock Gold and Gen­eral (B5ZNJ89)

Shares - - TALKING POINT -

For an on­go­ing charge of 1.17% this long-stand­ing fund in­vests your cash in a group­ing made up prin­ci­pally of gold min­ers. Gold’s po­si­tion as a tra­di­tional store of value means it can of­ten de­liver re­turns which un­cor­re­lated to eq­uity mar­kets. The team be­hind the Black­Rock fund hope to out­per­form the gold price through ben­e­fit­ing from the op­er­a­tional ex­cel­lence of the in­di­vid­ual min­ers it in­vests in.

It is worth not­ing that a com­modi­ties fund should only be con­sid­ered once you have a solid back­bone to a port­fo­lio, such as through the afore­men­tioned eq­uity mar­ket and bond funds. Com­modi­ties are high risk and un­pre­dictable, so you should con­sider putting less money in these types of funds. They pro­vide bal­last to a port­fo­lio but shouldn’t be a large com­po­nent of your over­all in­vest­ments.

Al­ter­na­tive: Guin­ness Global En­ergy (B3CCJC9)

Launched in 2008, this spe­cial­ist en­ergy fund has around half of its as­sets in the US, 15% in Canada and a lit­tle over 10% in the UK, pro­vid­ing gen­uinely global ex­po­sure to a re­cov­er­ing in­dus­try.

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