These types of funds really do what they say on the tin, which is to invest in a range of different asset classes, including equities, fixed income, cash and alternatives such as property.

In its asset management survey for 2013-14, the IMA points out that mixed-asset funds were the second bestselling fund type after equity funds, benefiting from declining demand for fixed income funds in 2013. Funds in the mixed-asset sectors recorded net retail sales of £4.6bn in 2013, up from £2.8bn the previous year.

The findings of the Investment Adviser Absolute Return Survey 2014 also point to the use of multi-asset funds. When asked what types of funds they are allocating to, multi-asset was the most popular after equity among advisers. Of the 162 respondents, 63 per cent allocate to multi-asset funds, while 51 per cent choose multi-manager ones.

Peter Fitzgerald, head of multi-asset at Aviva Investors, says: “The multi-asset fund was initially a simple concept: a fund that offered access to a broadly unchanging combination of different asset classes, with the aim being to smooth returns over time through diversification.”

He notes the changing face of multi-asset as these types of funds respond to the demand for outcomes-based solutions from investors.

“Today’s multi-asset funds have a different starting point and are designed not around beating a peer group or a long-term benchmark, but instead on meeting particular client objectives, which rarely involve beating a benchmark that could show large losses,” Mr Fitzgerald says.

“These goals are directly aligned with client needs. These could be to deliver stable returns while managing risks or to deliver a steady income. To meet these goals, the funds are able to invest in a range of asset classes and strategies, and often have significant flexibility when doing this.”

The pensions reforms announced by the government and the fact people are living for longer in retirement means that investors are under more pressure to find income and accumulate capital amid a low interest rate environment.

Mike Parsons, head of UK field sales at JPMorgan Asset Management, adds: “Investors have to think beyond traditional sources of income to beat inflation and a multi-asset income fund that draws on global security selection can provide compelling income and returns. The asset allocation expertise that forms the heart of multi-asset investing means that these strategies can adapt to changing markets and economic cycles while mitigating volatility.”

Multi-asset investing may not appeal to all investors, but it can form a core part of an investment portfolio in an uncertain world.

Ellie Duncan is deputy features editor at Investment Adviser