Mr Haynes adds: “Overall I do believe that risk-targeted and risk-rated investment solutions have an important part to play. However, they should not be seen as an easy option and advisers need to do their due diligence to ensure they are being employed correctly.”
Philip Scott is a freelance journalist
Expert view: ‘Untested’ vehicles
Laith Khalaf, senior analyst at Hargreaves Lansdown, highlights that given both risk-rated and risk-targeted funds are a relatively new phenomenon, they still remain somewhat untested. He warns: “They have not been through the mill yet.”.