asset allocation fund

(redirected from Asset Allocation Mutual 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 ?
Glob asset allocation mutual funds experienced the most product development in 2011 and 2012, with 52 new funds brought to market, the report shows.
today announced the launch of the TCW LifePlan Fund Series, a group of four asset allocation mutual funds combining the best of the firm's equity and fixed-income investment strategies.
The four asset allocation mutual funds are offered through Thrivent Financial's network of 2,500 registered representatives.
For more information about the JennisonDryden Asset Allocation Mutual funds, call your financial professional for a free prospectus.