An Asset Allocation Fund Guide
Asset Allocation funds can be described many ways but summed up in one word... Versatility. Many balanced funds that exist are going to keep a fairly fixed mixed of stock and bonds either in ratio (3:2) or percentage (60 percent stocks and 40% bonds). But an asset allocation fund will move money between asset classes so as to maximize profit potential. For instance, if bonds are climbing the fund manager may decide to invest more there and pull existing money from stocks to invest in bonds. The same goes in reverse. This allows flexibility and speed when managing money.
Categories: Mutual Funds Tags: asset allocation funds, asset allocation mutual funds, Finance, Investing, investments, Mutual Funds
