Of the three QDIA options-
balanced funds, target-date funds (TDFs), and managed accounts-TDFs get used most, but could a
balanced fund be just as good for many participants?
Balanced funds have delivered a superior performance over the last one- yr period
We are recommending
balanced funds over the NPS based on factors such as liquidity, tax efficiency and returns as these are important points of consideration for investors.
ON average, at year-end 2011, 61 percent of 401(k) participants' assets were invested in equities through equity funds, the equity portion of
balanced funds and company stock.
Gaurav Shah, Chief Executive Officer of Al Rajhi Capital, said, "This new fund complements our existing range of
balanced funds by offering further choice to investors who have a lower risk tolerance and lower appetite for capital fluctuations.
Gaurav Shah, CEO of Al Rajhi Capital, said, 'This new fund complements our existing range of
balanced funds by offering further choice to investors who have a lower risk tolerance and lower appetite for capital fluctuations.
The rise during the first quarter was driven by positive returns on most of the assets
balanced funds invest in, such as shares, gilts,property and cash, according to investment information provider Russell/Mellon CAPS.
Balanced funds, which invest in both stocks and bonds, have been hit hard by recent market volatility.
Defined-contribution plan assets were allocated 31% to diversified equity portfolios, 38% to employer stock, 22% to fixed income, 7% to
balanced funds and 2% to other options and loans.
Balanced funds, which invest in a combination of stocks and bonds, run a bit cheaper, with expense ratios of 1.
Haber since November 1986, ranked 217 out of 219
balanced funds tracked by Lipper Analytical Services last year, and 41st out of 61 such funds over the last five years.
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.
