Small investors looking to mitigate risk and employ a diverse strategy, but who don't know how to choose that one fund manager who will do it all might want to consider multi-management funds, according to an Associated Press feature.

Unlike conventional mutual funds, which rely on an individual or team who works together to build a fund's portfolio, multi-managed funds are pulled from the suggestions of several unaffiliated sub-advisors. 

"When constructing multi-managed portfolios, we're really focused on finding the best stock-pickers we can in the country," said Vantagepoint Chief Investment Officer Wayne Wicker. Vantagepoint, based in Washington, caters to public employees and uses the multi-manager approach.

Small investors can benefit form the diverse perspectives offered by managers. "What you're doing is diversifying at another meaningful level that you'd have to pick separate funds to do [otherwise]," said Chicago-based Morningstar Director of Funds Research Russ Kinnel.

Not only does the multi-manager strategy give investors access to money managers they may otherwise never discover, but it also affords them a certain stability. "What really differentiates a multi-managed fund is to find good ones with low correlation to one another," said Wicker. "While one manager may be out of synch, the other two may be doing just fine."

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