asset allocation fund


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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 ?
Hancock Horizon Dynamic Asset Allocation Fund Manager: Austin Zaunbrecher, CFA, joined HHF in 2013, with experience from Equitas Capital Advisors and Bank of America Merrill Lynch.
One way out of this problem is investing in asset allocation funds, which adjust the equity-debt allocation according to market conditions.
The Northern Global Tactical Asset Allocation Fund received an overall Morningstar rating of four stars among 847 moderate allocation funds as of September 30, 2011.
The Horizon Active Asset Allocation Fund is distributed by Northern Lights Distributors, LLC Member FINRA.
The funds will invest solely in their three broad market component funds (Vanguard Total Stock Market Index Fund, Vanguard Total International Stock Index Fund, and Vanguard Total Bond Market II Index Fund) and gradually eliminate exposure to their actively managed component funds (Vanguard Asset Allocation Fund and Vanguard Short-Term Investment-Grade Fund).
For example, the Value Line Asset Allocation Fund continues to be included on the exclusive Schwab Mutual Fund OneSource Select List[sup.
The new mutual fund is the firm's most broadly diversified asset allocation fund.
The Fairholme Asset Allocation Fund (NASDAQ:FAAFX) started on January 3, 2011.
Global Leaders Growth Fund (Class A: USGLX), and John Hancock Alternative Asset Allocation Fund (Class A: JAAAX).
In addition, Value Line Funds offers two portfolios, the Value Line Asset Allocation Fund (Ticket: VLAAX) and the Value Line Income and Growth Fund (Ticker: VALIX) that include both stocks and bonds in one fund.
Recent mutual fund launches have focused on alternative investments, including the multi-managed John Hancock Alternative Asset Allocation Fund (Class A ticker: JAAAX) and the John Hancock Global Absolute Return Strategies Fund (Class A: JHAAX), and the firm has included alternative strategies as components of its Lifestyle funds since their inception in 1998.
Earlier this year, the Value Line Asset Allocation Fund (VLAAX), with a long history of outperformance, was added to the Schwab Mutual Fund OneSource Select List.