asset allocation fund

(redirected from Asset Allocation Funds)

Asset Allocation Fund

A mutual fund with a portfolio mixing stocks, bonds, and cash equivalents in different types of securities. This is done to diversify the fund and avoid the volatility in any one market. There are three basic types of asset allocation funds. Balanced funds maintain a more-or-less fixed ratio of stocks and bonds. Life-cycle or target date funds start with higher-risk investments, but move toward lower-risk as the investor approaches some pre-determined date, usually retirement. Finally, life-style funds are actively managed according to an investor's or broker's specifications and market conditions.

asset allocation fund

An investment company that varies the proportion of its portfolio devoted to stocks, bonds, and money market securities in order to reduce the variability of returns and to take better advantage of different segments of the securities markets. An asset allocation fund is designed to save individual investors from being required to alter their investment mix in response to changes in market conditions.
References in periodicals archive ?
The Multi-Asset Solutions team won five of the Lipper Fund Awards for the performance of its income and asset allocation funds.
The performance of asset allocation funds were mixed in terms of the ratings.
Those investors with medium risk profile may prefer balanced and asset allocation funds, which invest about half of their money in the stock market.
The multi-manager, fixed income fund is the seventh fund in Wilshire's suite of mutual funds, which are operated alongside four asset allocation funds in the Wilshire Variable Insurance Trust.
KARACHI -- JCR-VIS Credit Rating Company Limited (JCR-VIS) has assessed the fund performance rankings of three open-end international asset allocation funds of Lakson Investments Limited for the one year period ended December 2014.
Summary: Asset allocation funds are ideal for those wary of investing actively and changing portfolio according to market conditions.
In Asia, PSG expanded its global footprint into the retail space, launching a series of dynamic asset allocation funds in Singapore, the Philippines, Malaysia and Taiwan.
Also known as 'solution' funds, asset allocation funds are often a good choice for investors looking for a well-diversified investment solution.
If you are considering either of those as mutual fund alternatives in your plans-perhaps even as you review your asset allocation funds, I know these articles will give you food for thought.
9 percent) of the FT400 advisors plan to start or increase usage of global macro and tactical asset allocation funds within the next six months.
One way companies are managing risk is through the use of asset allocation funds, which limit exposure to any one asset class.
The firm said that it has selected a CIO for balanced mandates and asset allocation funds.