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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Summary: Asset allocation funds are ideal for those wary of investing actively and changing portfolio according to market conditions.
One way out of this problem is investing in asset allocation funds, which adjust the equity-debt allocation according to market conditions.
"Asset allocation funds are designed to adjust the equity-debt allocation on the basis of a formula or change in the fund manager's perception of the environment," says Nilesh Rokadia, a Mumbai-based financial advisor.
"The problem with asset allocation funds is that there is too much variety.
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.
Al Falah GHP Value Fund, Askari Asset Allocation Fund, JS Aggressive Asset Allocation Fund, KASB Asset Allocation Fund, MCB Dynamic Allocation Fund, NAFA Asset Allocation Fund and Pak Oman Advantage Asset Allocation Fund.
Net flows of global asset allocation funds dipped significantly in the first quarter of 2013, according to new research.
The survey records net flows of global asset allocation funds of $3.8 billion at the end of the first quarter, a pace that, if maintained, will fall short of the $23.3 billion recorded 2012.
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 two breeds are similar: they invest in both stocks and bonds, offering the capital appreciation of the former and the secure yield of the latter.
Asset allocation funds tend to be looser, allowing managers to roam from category to category.
Adviser Sheldon Jacobs recommends Fidelity's three asset allocation funds (Fidelity Asset Manager, Fidelity Asset Manager: Growth, Fidelity Asset Manager: Income) and international-allocator Blanchard Global Growth.