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    Home»Mutual Funds»Mutual Funds: What Are They + How Do They Work?
    Mutual Funds

    Mutual Funds: What Are They + How Do They Work?

    August 12, 2025


    Considering IG Smart Portfolios

    Mutual funds are well-suited to investors who prefer a long-term, hands-off approach to investing. They are a common component of many pension schemes, ISAs and general investment accounts simply because they provide access to the broader market with relatively little effort.

    That said, mutual funds are not a one-size-fits-all solution, if only because they are often fairly expensive in terms of fees. We offer an alternative that could be a better fit: the IG Smart Portfolio.

    Our fees are lower than many mutual funds and competitors, starting from just 0.50% and capped at £250 per year, per account type. You can create an account in minutes, by simply answering a few questions to help us determine the best portfolio for you.

    We sport a range of wealth portfolios, expertly managed by IG and designed by BlackRock – the world’s largest asset manager with over $6 trillion under management.

    Your investment will be spread across shares, bonds and commodities to suit your investment needs and risk profile. For context, IG Smart Portfolios are built exclusively with BlackRock’s iShares ETFs, which we believe are the perfect asset if you’re seeking long-term growth. Not only do these ETFs have low fund charges, meaning you can keep more of your returns, but they also provide diverse market exposure to help minimise your investment risk.

    Each of our offerings are tailored according to a defined level of risk, and we regularly rebalance our portfolios as market conditions change. This ensures that you have the optimal asset allocation for your risk profile.

    Our asset allocation insights from BlackRock are supported by Aladdin, BlackRock’s proprietary portfolio risk management platform, which is licensed by more than 200 external organisations, including some of the world’s largest financial institutions, and is used to analyse over $21.6 trillion of assets.



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