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Asset Allocation Mutual Fund |
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Asset allocation mutual fund A mutual fund that rotates among stocks, bonds, and money market securities to maximize return on investment and minimize risk. 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. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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