Bob Brinker's Marketimer

  Friday November 24, 2017

Next Marketimer © Mailing Date: November 6th


© 1997-2017
Privacy Policy

Hosted by:
@ ADPAD INC.




EXAMPLES OF BALANCED FUNDS
Learn even more about this topic with the Encyclopedia of Personal Finance™

Unlike a regular balanced fund, an asset allocation fund can change the percentage it invests in each asset class. As market conditions change, managers of an asset allocation fund are free to divide its assets into bonds, stocks, and cash in any percentage they choose. This can make the asset allocation fund either potentially more or less volatile than a regular balanced fund. For example, if the fund manager thinks stock prices may fall, he or she might reduce the amount of the fund's assets in stocks and put them into bonds, thus lowering the potential risk of the portfolio.

Asset allocation funds usually hold stocks of large, well-established companies. Asset allocation fund managers may try to time the markets and purchase undervalued asset classes for which they expect a strong recovery. More so than in other types of funds, assets in balanced funds are selected so that losses in one asset will be offset by gains in another. These funds are often broken down into aggressive, moderate or conservative investment styles, generally relative to what proportion of the overall fund is invested in stocks. You should choose a fund that matches your own investment style.

Now that you understand what balanced funds are, you need to know how to tell whether a balanced fund is performing well.




LEARN EVEN MORE WITH THE ENCYCLOPEDIA OF PERSONAL FINANCE. CLICK HERE!

Powered by


Copyright ©1999-2017, Precision Information, LLC. All Rights Reserved