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 ?
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.
Also known as 'solution' funds, asset allocation funds are often a good choice for investors looking for a well-diversified investment solution.
Participants in John Hancock Asset Allocation Funds Benefited from Holding More Diversified Portfolios
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.
The three asset allocation funds (Active Managed Fund, Balanced Managed Fund and Conservative Managed Fund) are run by the group's global multi-asset team of three managers.
From a theoretical standpoint, target-date asset allocation funds are something that do bring value.
The mutual fund industry's answer for jittery investors like yourself has been a type of hybrid investment called either balanced funds or asset allocation funds.
The most significant findings, however, relate to the performance of the three tactical asset allocation funds in relation to the balanced funds reported on in the chart's last three columns.
In addition to investing in foreign and emerging markets, asset allocation funds may be invested in: (1) exchange-traded funds; (2) futures, options and other derivatives; (3) non-investment grade securities; (4) precious metals and minerals companies; (5) real estate investment trusts; and (6) money market instruments.
KARACHI -- JCRVIS Credit Rating Company Limited (JCRVIS) has assessed the fund performance rankings of Openend Asset Allocation Funds for the one, three and five year periods ending December 31, 2014.