Risk-profiled funds: The perils of the peer group

Risk-profiled funds are growing in popularity among advisers looking for long-term, cost-effective solutions to match the needs of their clients. These funds, which are designed to offer investors different levels of risk and return potentials, can be a useful tool for advisers with suitability and client requirements at the front of mind. But when choosing a risk-profiled fund for a client, how should one compare the options available? After all, the differences among them can be significant. Since they tend to invest via a multi-asset approach, with different structures and asset mixes...